Green Deal is not properly incentivised, say top bosses

The government is failing properly to incentivise the Green Deal, according to a survey of the most senior figures in the construction industry.

A questionnaire of chief executives and other senior company bosses carried out as part of Building’s forthcoming CEO White Paper found that two-thirds of the 55 individuals surveyed claimed the government is not doing enough to promote the Green Deal to homeowners.

The Green Deal, which is due to come into force next year and could create 250,000 construction jobs, is designed to get private finance to pay for energy efficiency improvements to existing homes, with the money paid back via future energy bills.

Many of those directly interviewed as part of the CEO White Paper said that further detail on the Green Deal and other green programmes needed to be set out more quickly.

“We are still unsure of what the Green Deal or feed-in tariffs will mean,” said the chief executive of a contractor with a turnover of more than £1bn.
The news emerged as more than two-dozen industry bodies signed a statement calling for a cut in VAT to 5% for energy efficiency improvement works taken out under the Green Deal programme.

In their joint statement this week, 26 built environment bodies, including the British Property Federation, the Federation of Master Builders, the RIBA and the RICS, called for the cut in order to give homeowners an extra incentive to undertake the work.

The statement was sent to MPs as they prepared to debate the final stages of the Energy Bill this week.

The exact details of how the Green Deal will work will be set out in a consultation, expected in late October or early November, with the government expected to start marketing the programme to householders early next year.