All taxes are kept under review and any changes are announced by the Chancellor as part of the Budget process.
The Government recognise the importance of household energy efficiency and renewable energy technology and since 1997 has introduced a number of measures in support of these. These include reduced VAT rates for the installation of energy saving materials such as insulation, draught-proofing, heating controls and also for micro-generation-technologies powered by renewable and sustainable energy sources. In addition, the Landlords Energy Saving Allowance (LESA) was introduced in 2004 to improve energy efficiency in the private rented sector. Pre-Budget report 2006 announced extensions to the scope of LESA as well as a stamp duty exemption for the majority of new zero-carbon homes. The pre-Budget report also announced that Finance Bill 2007 would include legislation to ensure that individual householders installing micro-generation are not subject to income tax on any payment for surplus electricity exported back to the grid.
The Government remain committed to meeting environmental challenges and continue to look for ways to promote household energy efficiency and renewable technologies through a range of tax and other policy measures.