Select committee: Environmental Audit Committee
Recommendation 52
6th Report - Environmental sustainability and housing growth
Published 16 Nov 2025
Environmental Audit Committee Environmental sustainability and housing growth All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Government should prioritise and incentivise retrofitting over demolition by strengthening requirements to reuse, repurpose and refurbish buildings before any demolition. It is contrary to the Government’s environmental objectives to incentivise carbon-intensive new building over the re-use of existing sites. To encourage the retrofit and repurposing of existing buildings, the VAT on retrofit projects should be reduced from 20% to reflect environmental benefits and support uptake. Government should therefore confirm that a property brought back into use would count towards its, and a local authority’s housing target. (Recommendation, Paragraph 168) 94
From: Environmental Audit Committee, 6th Report - Environmental sustainability and housing growth (HC 439), 16 November 2025
Government response
The government responded to the whole report on 13 March 2026 (deadline 16 January 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's inquiry and says it will "continue to implement our reforms to maintain environmental protection while accelerating housing growth", responding to each of the 39 recommendations in turn.
- On the presumption in favour of sustainable development, the Government is consulting on changes within the wider NPPF consultation published on 16 December 2025, and says it "will consider the responses received" before finalising a revised Framework.
- On whole-life carbon assessments, the Government "is not currently considering adopting the RICS methodology" as the UK industry standard, but will "keep it under review". It intends to "maintain a voluntary approach" to carbon accounting rather than mandate it.
- On ecological resource hubs, the Government agrees that ecological expertise is critical but does not consider separate hubs "currently necessary", and says it will keep this under review. It also states it has "no plans" for mandatory ecology and carbon training in planning qualifications.
- On taxation, the Government says it "does not plan to review council tax on the basis of embodied carbon". On VAT, it states that the Chancellor is responsible for decisions on tax policy, taken at fiscal events.