One of the main selling points of the Green Deal is that the products included in the scheme are granted the lower 5% rate of VAT (bar windows but that is another matter!). The 5% rate will help ensure that the cost of the home improvements are outweighed by the benefits and energy saving reductions they bring. However, the EU being the typical EU, has said that this is not allowed and the UK Government has to overturn this. The Coalition really can’t be seen to let this fail so has promised to fight the EU to make sure the 5% VAT stays.

I suppose while they’re at it they can lobby for windows to be included in the whole package then it will make things totally fair and balanced! But that’s a pipe dream I suppose! Industry insiders have apparently said that if the EU wins it’s case against the Government, it could pose a serious threat to the whole plan. The problem being that if VAT has to be put back up to 20%, the likelihood of the ‘Golden Rule’ actually working is going to be pretty slim therefore rendering any incentive to the customer non-existent.

So clearly a lot riding on this VAT decision then. Problem is, there isn’t a lot of time left to get this sorted. At the time of writing, there is just 39 days until the 1st October start date. Obviously this needs to be rectified before then, otherwise it’s launch is going to be very similar to that of a lead balloon!

Just to make you choke on your porridge a bit more, Britain pays the princely sum of £56m PER DAY to be part of this marvelous organisation which we call the EU. With it’s central parliament managing to dictate nearly everyone of our rules with their ridiculous directives, initiatives and downright stupid laws which make life in this country ever more complicated! You know I read somewhere that every year the EU passes over 3000 directives a year! 3000! I couldn’t even tell you what a single one of them were!

If we weren’t part of the EU, and I believe fully that we will do absolutely fine without it, we wouldn’t have to worry about the Green Deal failing on the basis of VAT reductions and we could include energy saving windows in the deal, again without any fuss or hindrance!

The clock is ticking. And what stands is pretty clear: 5% VAT and the Green Deal works. 20% VAT and the Green Deal fails. Come on Government, show your mettle and fight back!

A full report on the matter can be found here: