“There were some real positives in the spring statement, particularly around VAT being scrapped for specific renewables, namely solar panels, heat pumps and insulation for domestic properties. This should encourage more people to look seriously at how new builds are heated and it has an environmental benefit, as well as providing financial savings for business and homeowners. While this move is welcomed, it doesn’t really go far enough and doesn’t assist a great deal with retrofitting existing properties and making this option more accessible to homeowners who may not be able to afford the renewables included in the chancellor’s statement. It feels like a first step that the government must now build on, through the delivery of a national retrofit strategy, alongside long-term funding and incentives.
“The fuel duty cut will save a little bit for contractors in construction, but it’s unlikely to offset the impact on the ban on red diesel that comes in this April. Contractors will have to use standard white diesel at a higher price to run plant machinery, pushing construction costs up even with the duty cut announced by the chancellor.
“Some of the support touched on for SMEs, such as the promise of tax rate cuts for business investment in the autumn budget following consultation with businesses, is kicking the can down the road and chances are that even if the measures agreed later in the year are sufficient, it might come too late for some firms.
“The spring statement has demonstrated progress, but perhaps not enough and the Government and HM Treasury should be listening to valid criticisms and start building on the positive steps immediately, rather than waiting until autumn.”
David Banister, Director, Studio 256