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V1031 – Sustainability Incentives Bill 2016

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  • View Poll Results: Should this bill be passed into law?
    As many are of the opinion, Aye
    On the contrary, No

    • Thread Starter

    V1031 – Sustainability Incentives Bill 2016, TSR Labour Party and TSR Green Party

    An Act to reduce certain taxes for the purpose of promoting environmentally friendly lifestyle choices by consumers and sustainable approaches to business by firms, as well as reducing energy expenses and environmental impact of the United Kingdom, and lessening the country's reliance on foreign energy sources.

    BE IT ENACTED by the Queen’s most Excellent Majesty, by and with the advice and consent of the Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

    1: Definitions
    (1) ‘Value Added Tax' or 'VAT' shall mean that as defined in the Value Added Tax Act 1994, as amended.
    (2) 'reduced rate' is a rate of 5 per cent VAT as defined in the Valued Added Tax Act 1994 Section 29A.
    (3) 'zero-rated' describes a good or service supplied upon which VAT is not charged as defined in the Valued Added Tax Act 1994 Section 30.
    (4) 'specified energy saving materials' includes the following:
    1. light-emitting diode (LED) light bulbs
    2. controls for central heating and hot water systems
    3. draught insulation, eg around windows and doors
    4. insulation on walls, floors, ceilings, lofts, etc
    5. solar panels
    6. wind turbines
    7. water turbines
    8. ground-source heat pumps
    9. air-source heat pumps
    10. micro combined heat and power units
    11. wood-fuelled boilers
    (5) 'energy efficient' boilers, fridges, freezers, and fridge freezers are defined as those which are rated A+, A++, or A+++ on the European Union's energy labelling system

    2: Changes To VAT
    (1) In addition to those listed in the Value Added Tax Act 1994, the reduced rate of VAT shall apply to the supply of the following goods and services:
    1. Energy efficient fridges, freezers, and fridge freezers
    2. Energy efficient boilers
    3. Compact fluorescent (CFL) light bulbs
    (2) In addition to those listed in the Value Added Tax Act 1994, the supply of the following goods and services shall be zero-rated:
    1. Repairs and renovation to houses, flats and other domestic dwellings, including but not be limited to the replacement of windows, replacing damaged or missing roof tiling, repairs following flood, fire or other storm damage.
    2. Specified energy saving materials (permanently installed in residential/charity premises)

    3: Extent, Commencement, Short Title
    (1) This Act extends to the United Kingdom
    (2) Shall come into force on 1 April 2017
    (3) This Bill may be cited as the Sustainability Incentives Act 2016

    This legislation uses a wide array of tax incentives to effect positive change in the habits of consumers and firms in order to better the environment, as well as providing a substantial reduction in long-term energy expenses for British households, and lessening the UK's reliance on overseas energy sources.

    Sources & explanations for the inclusion of items:
    • Reduced rate tax on certain energy efficient appliances (specifically fridges, freezers, fridge freezers, and boilers): The future purchase of these appliances is being encouraged by applying the reduced-rate VAT level to them, however they are not placed in the zero-rated category as this would potentially reduce price to the point where people would unnecessarily replace appliances in order to buy more energy efficient appliances, resulting in greater environmental impact due to the energy efficiency improvement being too small to offset the energy costs of creating the new appliance.
    • Reduced rate tax on compact fluorescent (CFL) light bulbs: CFL light bulbs are cheap and energy efficient, and so reducing the VAT rate applying to them encourages their purchase over the currently commonplace (and extremely inefficient) incandescent bulbs. However, CFL bulbs are not being moved to the zero-rated VAT category, as the alternative LED bulbs are even more energy efficient, and so should be pushed as the 'ideal' light bulb to buy. LED bulbs are currently quite expensive, and therefore are in greater need of a price reduction than CFL bulbs.
    • Zero rate tax on repairs and renovation to houses, flats and other domestic dwellings: The goal of this removal of VAT is to lessen the economic impact upon households wishing to repair their home after storms, floods, and other weather, or to better insulate certain areas of a home, such as windows or roofs.
    • Zero rate tax on specified energy saving materials: The list of energy saving materials has been primarily sourced from the official government list of energy products qualifying for the reduced rate of tax (https://www.gov.uk/tax-on-shopping/e...aving-products), with the addition of LED light bulbs. As we are moving to a more energy conscious approach, these items have been moved from the government's 'reduced rate' category of VAT to the 'zero-rated' category, in order to further incentivise the purchase of more environmentally sound goods.
    Cost of previous bill's VAT reduction on energy-saving materials from 20% to 5%: £20m (Source: http://www.ifs.org.uk/bns/bn09.pdf)
    20% - 5% = 15%
    £20m = 15% VAT rate revenue
    15% / 3 = 5%
    £20m / 3 = £6.67m = 5% VAT revenue
    Estimated additional cost of moving LED light bulbs (not included in previous bill's VAT reduction) to zero VAT rate: £0.5m
    £6.67m + £0.5m = £7.17m
    Cost of moving energy saving materials from 5% to 0%: £7.17m
    Estimated cost of moving fridges, freezers, fridge freezers, boilers, and CFL light bulbs to reduced VAT rate: £3.5m
    Estimated cost of reduced VAT rate on repairs and renovations: £8.5m

    Total: £7.17m + £3.5m + £8.5m = £19.17m

    The cost of this bill is justified by the enormous environmental benefits it will entail, including monetary savings through the resultant lower energy usage by the country, as well as greater purchase of these goods due to lower costs.

    A quality bill. Here's to our friends in the Green Party.


    This is a very good idea and has my support.

    Supporting idiotic behaviour in the name of a warm and fuzzy feeling, excellent idea...

    (Original post by Jammy Duel)
    Supporting idiotic behaviour in the name of a warm and fuzzy feeling, excellent idea...
    Who the hell are you referring to? The left-wing parties that you disagree with? You should be ashamed of yourself for smearing and face disciplinary action as appropriate. Anyhow, I support this bill 100% with open hands and believe that this bill will make a huge different in increasing environmentally friendly lifestyle in the UK.

    P.S: I've already voted in the polls before it was closed.

    (Original post by Jammy Duel)
    Supporting idiotic behaviour in the name of a warm and fuzzy feeling, excellent idea...
    What idiotic behaviour are you referring to?
    • Thread Starter

    Ayes to the right: 32
    Noes to the left: 8
    Abstentions: 7

    The Ayes have it! The Ayes have it! Unlock!

    Turnout: 94%
Updated: August 23, 2016
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