Recommendation 41

We recommend that Ministers evaluate the impact of the time-limited zero- rate of VAT for the installation of certain Energy Saving Materials well before its expiry date of 2027, with a view to extending the provision beyond 2027 if it has made a demonstrable and positive contribution to meeting carbon budgets and the Government’s Net Zero objectives. We also recommend that Government go further and consider harmonising the VAT rates of new build and retrofit work. Building to net zero: costing carbon in construction 71 We have already recommended that the Government consider extending the zero- rate of VAT to innovations which improve energy efficiency, such as energy storage systems