Get ready to pay more council tax if your home is not insulated

Poorly insulated home? You should pay more council tax

Reduced council tax payments and lowered stamp duty for efficient properties will encourage home owners to take up the Government’s Green Deal policy, a new report has claimed.

By Sophie Christie4:09PM BST 08 Jul 2013CommentsComments
http://www.telegraph.co.uk/finance/personalfinance/consumertips/household-bills/10166251/Poorly-insulated-home-You-should-pay-more-council-tax.html

But houses that show poor performance in energy efficiency should pay a higher rate of stamp duty and council tax, the report argued.

The report by the UK Green Building Council (UK-GBC) follows the publication of last month’s Government statistics which found that only 245 consumers had confirmed they wished to proceed with financing the Green Deal plan, six months after its launch.

In a bid to improve the current Green Deal policies, the UK-GBC suggested variable stamp duty and council tax schemes which would either reduce or raise the payments according to the energy efficiency of your home.

Giving discounts to a property that is above a certain energy efficiency standard, or charging houses more for a poor efficiency standard would incentivise retrofit because of the “broad impact of council tax and its unpopularity” the proposals argue.

The UK-GBC insist that these incentives will increase the annual number of retrofits to 1.5 million and contribute millions of pounds to the UK economy each year.

Paul King, chief executive of the UK Green Building Council, said: “This sends a powerful message to Government that there are viable policy options available to boost demand for the Green Deal and help tackle the UK’s energy efficiency crisis. The research shows not only the impact additional incentives would have on carbon savings, but how they could breathe new life into the construction sector and boost economic growth.

“There are some tough political choices to be made, not least in using the tax regime to nudge householders into action, but the opportunities for UK Plc are just so great, that this is a nettle which needs to be grasped.”

The Green Deal offers home owners the chance to take out loans with private companies to cover the cost of energy efficiency improvements like new boilers and better insulation.

But the deal has so far proved unpopular as people complain of its complexity and the high interest rates on the loans.

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