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The Chancellor yesterday announced that VAT will be reduced from 5 percent to zero on materials such as solar panels, heat pumps and insulation in a bid to help homeowners install more energy-saving materials. Brexit Opportunities Minister Mr Rees-Mogg welcomed the move, insisting it would not have been possible if the UK was still a member of the EU.<\/p>\n
The Tory MP tweeted: “The EU would not allow us to do this, another benefit of Brexit.”<\/p>\n
Mr Sunak announced plans to cut VAT on energy-saving materials such as solar panels, heat pumps and roof insulation during his Spring Statement on Wednesday.<\/p>\n
He told the Commons that energy efficiency would make a “big difference” to soaring bills.<\/p>\n
The Chancellor said: “We’ll also reverse the EU’s decision to take wind and water turbines out of scope – and zero rate them as well.<\/p>\n
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“And we’ll abolish all the red tape imposed by the EU.<\/p>\n
“A family having a solar panel installed will see tax savings worth over £1,000. And savings on their energy bill of over £300 per year.”<\/p>\n
Mr Sunak said the policy will not apply immediately to Northern Ireland due to “deficiencies” in the Northern Ireland Protocol but said support would be offered.<\/p>\n
The measure was welcomed by the chair of the all-party environment group.<\/p>\n
Conservative MP Anthony Browne said: “As energy bills rise, it was welcome to see the Chancellor recognise the important role energy efficiency can play by cutting VAT on energy-saving materials such as solar panels, insulation and heat pumps to zero percent.<\/p>\n
“Measures like this can help reduce dependence on expensive gas and I look forward to further announcements on energy efficiency as part of the PM’s energy strategy.”<\/p>\n
The measure was also welcomed by the Conservative Environment Network (CEN) group of Tory MPs who had previously urged him to slash VAT on energy-saving products and installation.<\/p>\n
DON’T MISS<\/strong> MP Stephen Crabb said: “This tax cut will mean more families can afford to insulate their home, cut their energy bills and stay warm.<\/p>\n “Insulating homes is the quickest way to help shield people from high gas prices and reduce our dependency on imported energy.”<\/p>\n Campaigners have been calling for action to help households reduce the amount of energy they use in their homes, as bills have soared due to rising global gas prices, worsened by Russia’s invasion of Ukraine.<\/p>\n Analysis suggests that energy efficiency measures installed over the last decade will save British households £1.2 billion this year, or nearly £200 on average for the six million homes which have benefited from the measures.<\/p>\n But home insulation rates fell sharply after cuts to Government programmes levied on consumer bills to improve energy efficiency in 2013, and ministers have struggled to design successful policies to encourage homeowners to make their homes more efficient.<\/p>\n The Government says it has committed £6.6 billion to improving energy efficiency.<\/p>\n
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Here’s what the Spring Statement really means for YOU [ANALYSIS]<\/strong><\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/139\/590x\/secondary\/Chancellor-Rishi-Sunak-3984693.jpg?r=1648115907392\")
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