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Green Deal needs incentives to make it work, says industry

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The Federation of Master Builders (FMB) has warned that without further incentives the Green Deal will fail

The FMB has joined the UK Green Building Council (UK-GBC) in calls for additional incentives to drive forward the government’s failing energy efficiency scheme.

The UK-GBC has previously demanded variable stamp duty and council tax to drive uptake of the Green Deal.

A survey of building firms, carried out by the FMB, found that 70 per cent of respondents thought a reduction in VAT would be a ‘successful’ or ‘highly successful’ way of encouraging take up of the Green Deal.

Brian Berry, chief executive of the FMB, said: ‘It’s time for the government to accept the Green Deal has not been a success. 

It’s time for the government to accept the Green Deal has not been a success

‘The latest Government statistics show that just over 70,000 Green Deal assessments have been undertaken to date, but only 12 Green Deal Plans are ‘live’, demonstrating that a growing number of home owners want to improve the energy efficiency of their properties, but they aren’t interested in paying for it using Green Deal finance. A reduction in VAT would reduce the overall cost of the work and make Green Deal finance more attractive to home owners who may be deterred by a large debt against their property.

‘Above all the government needs to seize the opportunity to announce how it intends to light the touch paper to the flailing Green Deal scheme.’

The latest Green Deal figures have shown that just twelve homes have successfully completed the full process and had energy efficiency measures installed.

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