No Cut On Window VAT – Another Kick In the Sunaks

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Mike Parczuk, MD of window firm Sternfenster, has written angrily in response to the Chancellor’s Spring Statement making some home improvements zero VAT rated – but not windows and doors.

Parczuk writes, Rishi Sunak was the hero of the hour in March 2021 with the financial stimulus he put in place to help businesses survive the impact of lockdown. Without it many companies would have failed. The point I’m about to make is not a political one.

It is, however, one that comes from a continuing level of frustration about how our product offer as an industry is seen – or perhaps not seen – by government. 

When making his Spring Statement, on 23 March, Chancellor Rishi Sunak started to talk about cutting VAT on energy saving materials (ESMs) to zero, to encourage homeowners to make energy saving improvements, my ears naturally pricked up.

There was Sunak making the link between energy prices, the cost-of-living crisis and an opportunity to make homes greener and warmer through renewable energy sources and insulation.

VAT reduction call

Reducing VAT on home improvements, especially those that improve the energy efficiency and carbon pollution of homes is something the window and door industry has argued for over-and-over again. We just wanted a reduction to 5% VAT on windows and doors to stimulate the industry and allow us to be part of the drive to Net Zero.

No consideration

Contrary to what you and I might think and despite the focus given to windows and doors in Part L (Conservation of Fuel and Power) of the Building Regulations, the government in this context does not class windows and doors as ‘energy saving’.

Hot water systems are; solar panels are; wall, loft, floor and ceiling insulation, are; but the only mention of windows and doors in the context of the zero-rated VAT break on ESMs, is in relation to draught proofing.

The sum of the parts

Part L, Part F – I’m not even going to get into the debate – government just doesn’t seem to get us or is that we don’t get it? We’re included in Part L, we’re included in Part F (whether we like it or not). But to not be included as an ESM? Something has to be going wrong somewhere don’t you think?

Picture: Mike Parczuk, managing director of Sternfenster. 

Article written by Cathryn Ellis
24th March 2022

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