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The Green Deal will fail unless the Government takes “swift and decisive” action to incentivise consumer demand for energy efficiency, according to the Federation of Master Builders (FMB).
A survey of FMB members in Great Britain showed that more than 70 per cent think a reduced rate of VAT would be a “successful” or “highly successful” way of encouraging their customers to commission energy efficiency work.
In addition, almost two thirds (65 per cent) said a free energy efficiency assessment would encourage more of their customers to improve the energy efficiency of their home.
Brian Berry, chief executive of the FMB, said: “It’s time for the government to accept the Green Deal has not been a success. The FMB has worked hard to promote the Green Deal to small construction firms, but until our members see a clear demand for Green Deal work and a more straightforward route to the Green Deal market, they will not engage with the scheme.”
Berry pointed to the latest government statistics, which show that only 12 Green Deal plans are ‘live’ despite more than 70,000 Green Deal assessments having been completed.
He said this demonstrated that a growing number of home owners want to improve the energy efficiency of their properties, but “are not interested” in paying for it using Green Deal finance.
Berry added: “Our latest research also supports the Government’s own findings that just having a Green Deal assessment is enough to encourage a significant number of people install energy efficiency measures in their home, regardless of how they choose to pay for it.
“The Government should consider offering free energy efficiency assessments alongside a reduction in VAT.”
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