Bean Beanland, the HPF’s director of growth and external affairs said: “We, in concert with others in the sector, have long argued that the tax regime in the UK has favoured the burning of fossil fuels, so this is a particularly welcome measure. We also understand that all materials and services are included. This level of simplicity is essential for the installer community, many of which are micro-businesses that struggle with overly complex tax rules.”
Future visibility
“Setting the intervention for five years gives future visibility, which will encourage investment in both skills and capacity, by the whole sector in the UK. When taken in conjunction with the new Boiler Upgrade Scheme, which also starts on 1st April, domestic scale heat pumps are going to be that much more affordable for both homeowners and landlords. “
“Capital costs are only one half of the equation, operational costs for heat pumps do still have to be addressed through the rebalancing of taxation on electricity and fossil fuels that reflects the relative carbon and other emissions. But for today, the VAT outcome is to be celebrated and the government commended for the message that this sends to consumers and to the industry alike.”