Andrew Hirst, partner and decarbonisation specialist at law firm Womble Bond Dickinson reacts to Chancellor’s announcement of zero VAT on energy efficiency measures in Spring Statement:

“The Chancellor’s announcement of zero VAT on energy efficiency measures for households such as solar panels, heat pumps and insulation will be positive in helping the UK achieve its net zero target and will provide an incentive for some households to utilise green technology.

“However, not all households will be able to afford the green technologies and therefore in the long run further support will be needed.

“The biggest difference between this announcement and recent attempts by this government to incentivise households to invest in energy efficiency measures is it’s duration of five years. Having the measure in place for a sustained period gives people time to realise it’s there, think about it, and then act.

“In in terms of larger decarbonisation projects the rate relief for heat networks is positive as it will help the financial viability of heat networks which often have challenging economics.”