Recommendation 13

The retrofitting of existing homes is essential for ensuring the UK reaches net zero by 2050. Retrofitting will come at substantial cost and can only be achieved through a mix of both public and private funding. We welcome the additional £3.9 billion of funding being provided for retrofitting as outlined in the Government’s Heat and Buildings Strategy, including for public sector buildings, social housing, and low-income families. But more needs to be done to provide long-term certainty for funding for retrofitting beyond 2025. The Government should set out its longer- term funding plans beyond 2025, and outline the share of funding for retrofitting it anticipates will come from private investment. The use of private sector financial instruments should be encouraged and incentivised by government. This should include greater action by the UK Infrastructure Bank to support private financing of retrofitting, following the example of the German national infrastructure bank. We note the Government’s proposal to encourage green mortgages, and this should be subject to extensive consultation to avoid unintended consequences. The Government should also consider offering tax incentives, which could include lower VAT, stamp duty and council tax, for energy efficient measures and homes.