Heating Industry Wants VAT Reduction on Boilers

20th Sep 2011

Back in February, the Chancellor of the Exchequer was approached with a request to lower the rate of VAT on central heating boilers to 5%, but yet seven months on, the proposal seems to have fallen on rather deaf ears.

While the Government seems to be trying to avoid the issue, the lack of response is getting the heating industry a bit hot under the collar, and it has lead to the reactivation of an online petition.

When Peter Thom, the managing director of Green Heat, originally wrote to George Osborne in February this year, and appealed to the Chancellor to investigate why boilers and flue heat recovery are subjected to a higher rate of 20% VAT. And that consideration needs to be given to bring it in line with other energy saving products, and reduce the VAT to 5% professionally installed domestic central heating boilers and passive flue heat recovery.

Mr Thom boldly suggested that VAT should be reduced immediately, for a limited two year period before being reviewed. But to date, despite sending numerous follow up letters to Mr Osborne and Energy Secretary Chris Huhne, the Government continues to remain silent.

“We cannot wait on more stop start schemes from Government, the industry needs bread today and not just the promises of jam tomorrow,” said Mr Thom.

“If you care for the immediate future of the industry, sign the petition today.”

Mr Thom added that while unregistered and cash cowboy boiler installers were growing, every day more and more legitimate firms were facing financial difficulty, with many going into administration or even disappearing altogether.

You can sign the petition – which is open until 22 August 2012 – by visiting www.epetitions.direct.gov.uk/petitions/12292