The UKGBC (UK Green Building Council) believe that changing council tax systems to ensure that discounts on both tax and on stamp duties are given to the most energy efficient homes is the best way forward. With these discounts being given more homes would be eager to take up incentives such as the Green Deal, which were recently launched. The UKGBC believe variable council taxes could incentivise up to 1.5 million home projects per year and boost GDP (Gross Domestic Product) by up to £4.4bn.
A spokesperson for the LGA (Local Government Association) said they had reservations with regards to the council tax discount, worrying council tax budgets could be affected as many local councils currently help back the Green Deal.
Paul King, chief executive of the UK Green Building Council said: “There are some tough political choices to be made, not least in using the tax regime to nudge householders into action, but the opportunities for UK Plc are just so great, that this is a nettle which needs to be grasped.”
With only 245 households agreeing to make energy efficient improvements to their home since the Green Deal scheme started in January 2013, take up on the loans has been minimal. Criticisms have been made of the Green Deal scheme as the improvements to homes will have to be paid back via the money saved on energy bills and will not be payable by the individual person making the changes. One of the major concerns is that a person could make these improvements to their property before moving and then leave the new home owner to make the re payments.