CPA critical of the Budget

Michael Ankers, chief executive of the CPA, said: “Our biggest concern was the failure to lower the rate of VAT on the installation of high efficiency condensing boilers”.

He added: “There is a concern that without a tax incentive, the regulatory changes that came into force by 1 April will not deliver the reductions in carbon emissions that the government is seeking, and will seriously disrupt the boiler industry in the UK”.

The CPA was also disappointed that the government had missed the opportunity to clarify the relationship between the climate change levy and the new European Union emissions trading scheme.

On the plus side, the association was pleased with the extended list of energy saving products eligible for a lower rate of tax, which now includes air source heat pumps and mirco combined heat and power. It also welcomed the release of clearer guidance on the research and development tax credit.

In a separate initiative, the CPA has criticised standards body the BSI for its lack of support for UK industry. The association has accused it of failing to promote British standards and of charging too much for copies of new harmonised European standards.

The association’s president Roy Harrison has written to Patricia Hewitt, secretary of state for trade and industry, to express concern about the partnership between BSI and industry.

Harrison said industry people “devote many hours to helping the BSI” but that the CPA was becoming “increasingly disappointed in the part the BSI were playing in this partnership”.

The CPA claims that aggressive marketing by American standards bodies and the fact that their standards are freely available is encouraging countries to adopt American standards.

This could cause problems for British manufacturers who conform to the new harmonised European standards.