Call for an Energy Saving Stamp Duty

The Energy Efficiency Infrastructure Group (EEIG) has written to the Chancellor, calling on the government to support a long-term, revenue neutral Energy Saving Stamp Duty Incentive.

The coalition of industry groups, businesses and charities, which organisations working with landlords and tenants, aims to encourage property owners to future-proof their buildings against high energy bills.

The looming energy price crisis has brought the UK’s dependence on imported gas into stark relief.

COP26 also highlighted the need for action to reduce emissions from homes, which have risen over the last six years and now account for 20 per cent of the UK’s carbon emissions.

An Energy Saving Stamp Duty would incentivise 19 million property owners to insulate their homes and install energy efficient heating systems such as heat pumps.

The EEIG is a collaboration of leading industry and trade bodies and consumer groups, think tanks, environmental NGOs and major engineering, energy, construction and insulation businesses. 

The EEIG’s proposal for an Energy Saving Stamp Duty, as part of its Better Buildings Investment Plan, can be revenue neutral and allows more public funding to be directed towards those that don’t have the means or access to finance.

The tax incentive is backed by a broad range of consumer, retail, builder and business groups representing tens of thousands of businesses, professionals and consumers.

The incentive would encourage people to either purchase a more energy efficient property or incentivise them to make it more energy efficient after it had been purchased, for example by installing insulation or a heat pump.

Owners would be charged a lower level of stamp duty for doing so.

Sarah Kostense-Winterton, EEIG chairman, said: “With so many millions of homes to retrofit, this long-term structural incentive is necessary to engage and prepare the market, with businesses and government working together to create a thriving industry, building a resilient supply chain and boosting energy security.”