VoteClimate: VAT (Listed Properties) - 4th March 2020

VAT (Listed Properties) - 4th March 2020

Here are the climate-related sections of speeches by MPs during the Commons debate VAT (Listed Properties).

Full text: https://hansard.parliament.uk/Commons/2020-03-04/debates/BEC8EA13-13B7-447D-9B37-E34AB8C83CEC/VAT(ListedProperties)

16:44 Craig Mackinlay (South Thanet) (Con)

I congratulate my hon. Friend on securing this important debate for those of us who represent areas like Sandwich that have a high preponderance of listed buildings. There are more than 3,000 in my constituency. They are often in rural areas where properties are remote, isolated and, in many cases, hard to heat. I hope that he will talk about the opportunity to reduce VAT to, say, 5% on renewable energy initiatives in listed properties, which the Minister might want to take into account in the forthcoming Budget or the comprehensive spending review later this year.

Does my hon. Friend agree that one of the great challenges with climate change and pollution is tackling some of the problems with the heating and insulation of such properties? If they are listed, there are features that have to be protected in the process, so it is an expensive business. It is very much in the national interest that these changes should be made, and it is only right that the Treasury should consider whether previous concessions could be reintroduced.

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17:11 Wera Hobhouse (Liberal Democrat)

I congratulate the hon. Member for South Thanet (Craig Mackinlay) on securing this debate, which is very relevant to my constituency. I have already had many discussions with relevant bodies, in particular the UNESCO world heritage site body, on the need to get to net zero. I am especially worried about listed buildings in the context of the climate emergency.

That situation is not a coincidence. I am proud that Bath has been a pioneer in protecting buildings of interest since the 1880s. Listed buildings and how to maintain our built heritage is very much a Bath issue. As the buildings age, the challenges of preserving them have grown. In addition, we now face the challenge of the climate emergency, so the urgency of upgrading listed buildings has only grown.

The housing stock in this country is our largest producer of carbon emissions and millions of homes will need to be made much more energy-efficient over the coming decades if we are to have any chance of achieving net zero. That poses a significant enough task for most homeowners but, for those who own the 2% of total housing stock that is listed, the challenge is greater and more expensive, as we have heard. This debate has to be about not the swimming pool, which might add value to a property, but the maintenance of heritage and tackling the climate emergency.

Listed buildings are likely to be older and therefore less insulated, and to have less efficient heating systems than other properties. Coincidentally, though, older properties keep cooler, so if we look at the climate emergency and overheating, sometimes the listed building might provide an answer. Previous generations knew well how to keep cool. I have the privilege of sometimes being invited into beautiful properties in Bath, and have talked about the shutters that still exist in some of the older buildings. Previous generations knew how to use shutters effectively. It is important to work with people who own listed buildings and are interested in the history of how we used to live, and for people to put their mind to understanding the history and often the benefits of what previous generations knew about healthy living.

If the Government are to take their net zero obligations seriously, financial support and incentives are vital to reduce carbon emissions from listed buildings. The simplest way, and a necessary first step, for the Government to ease this financial burden is for VAT relief to be extended from simply covering alterations to applying to all renovations and improvements in listed properties, especially where aimed at reducing carbon emissions and getting to net zero.

Extending VAT relief would help the thousands of private owners of listed buildings in Bath and beyond to preserve important historical properties and to tackle the climate emergency. I do not want to argue with the hon. Member for South Thanet about whether it was worth leaving the European Union so that the 2%, the listed building owners, can get VAT relief, but it would be somewhat perverse—or hypocritical—of the Government not to use their freedom to look at VAT relief on listed properties in this country. Britain attracts thousands—millions—of tourists every year because of its wonderful built heritage. We need to ensure that we preserve it and, at the same time, to take our climate change and net zero obligations seriously.

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17:25 Anneliese Dodds (Labour)

The debate has been about whether we need a targeted change in relation to repairs to listed properties. On a bit of a tangent, there was a little discussion about VAT on the installation of energy-saving technologies. I agree with the comments of the hon. Member for Glasgow Central (Alison Thewliss) in that regard—she was spot on. The comments by the hon. Member for Bath (Wera Hobhouse) about the listing system in Bath and what it has achieved were very interesting, but I question whether a high cost for introducing energy efficiency and renewable energy is unique to the listed sector.

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