Brown’s Budget not green enough

RIBA president Jack Pringle welcomed the proposals to increase funding on education and health but said it lacked clear incentives to support environmentally friendly developments.

Pringle said: “The Chancellor told us that his Budget would be about environmentally sustainable growth. But behind the headline-making tax cuts, there’s not much that’s new and much that’s been left unsaid. If the Government is serious about encouraging householders to do their bit for the environment, then the incentives and grants on offer will need to become far more generous”.

Amongst the measures announced in the Budget was that all new homes built from 1st October 2007 and costing up to £500 000, that meet the zero carbon standard, will be exempt from stamp duty. RICS said the move was disappointing. “It is a step in the right direction but this initiative continues to miss the main built environment carbon emissions culprit, the existing stock”.

Measures outlined in the Budget

• Until 2012, homes worth less than £500,000 with zero carbon rating will be exempt from stamp duty. Homes worth more will pay a stamp duty of £15 000
• Assistance to householders with an intention that all homes will, wherever possible, achieve their cost-effective energy efficiency potential by 2020
• An increase in the Low Carbon Buildings Programme to £18 million to assist microgeneration
• Ofgem to be encouraged to increase incentives to householders who export green energy to the National Grid
• A reduction in VAT to 5% on specified alterations to housing for older people
• Seeking European Union agreement to cut VAT on energy-saving environmentally-friendly products
• A rise in education investment from £60bn by £74bn by 2010
• An £8bn rise by 2008 in health investment
• £300 - £4,000 grants for pensioners to install insulation and central heating
• Reduced duties on biofuels and biogas extended