Pre-budget statement short on specifics

Among the range of initiatives outlined in December is the government’s ambition that by 2016 all new homes will be zero carbon, meeting the highest level in the Code for Sustainable Homes (see story, left). To promote this, stamp duty will be exempt on the vast majority of new zero-carbon homes from 2007.

Although the pre-Budget statement was welcomed by many, it contained few specific new spending commitments or tax measures, and was seen by many as not going far enough.

Commenting on the statement, RICS said it supported the promotion of energy efficiency by the removal of stamp duty on zero-carbon homes, but highlighted that new homes represented less than 1% of the current stock.

It called for other fiscal incentives to be considered, including council tax rebates, to ensure there is an incentive for all homeowners to make their properties energy-efficient.

Stewart Baseley, executive chairman of the House Builders Federation, also warned that the challenge will be to ensure that consumer behaviour adapts to zero-carbon living and that the government sticks to its existing housing supply target.

The statement contained a raft of other measures to promote sustainable construction. These included:

• Confirmation that Climate Change Levy rates will increase in line with inflation from 1 April
• The government is to test higher standards for new and refurbished schools to reduce their carbon emissions by up to 60% over existing standards and in some case even carbon neutrality.
• The government is to examine the possibility of establishing new methods of financing energy audits and energy saving
• A package of measures to encourage the development of biofuels and the biofuels marketn The government will promote the development of a global carbon market through the expansion and strengthening of EU Emissions Trading Scheme, and linking it to schemes outside the EU.

The measures will be formalised in the spring Budget and will be set out in the Finance Bill.