To ask His Majesty’s Government what steps they are taking to improve the sustainability and quality of existing buildings, including by cutting value added tax to incentivise building repairs and maintenance.
My Lords, the Government are committed to improving the sustainability of existing buildings. The Autumn Statement expanded the current zero rating of VAT on the installation of qualifying energy-saving materials in homes until March 2027. This relief, worth more than £1 billion, now also includes additional technologies and extends to buildings used for charitable purposes. Additionally, the Government are investing £12 billion in Help to Heat schemes to ensure that homes are warmer and cheaper to heat.
I declare my interest as the Church of England’s lead bishop for housing. I thank the Minister for her Answer. Would she not agree that, as a point of principle, it is preferable to incentivise restoring and renewing buildings which already exist, rather than purely incentivising new building? The present system encourages new build over reuse. While it is clear that we need more housing in particular, this does not encourage a culture of sustainability. The Listed Places of Worship Grant Scheme has been a great help for certain kinds of buildings, but it is only for places of worship, it is due to expire in 2025 and it requires considerable administration. Now that the UK has left the EU, the rate of VAT on repairs is in the gift of His Majesty’s Government. Will they commit to the principle of sustainability by undertaking a review of the potential benefits of a lower rate of VAT on repairs?
The reality is that we need both to restore and repair existing buildings and to encourage new build to address our housing supply issues. We have a reduced 5% rate of VAT for renovation works on residential properties, including the conversion of buildings from one residential use to another; on conversions from commercial to residential; and on the renovation of properties which have been empty for two years or more prior to renovation work. We are looking carefully at this issue. Since we left the EU, we have had requests for relief totalling about £50 billion across different forms of VAT. This request needs to be seen in the context of that bigger figure.
My Lords, I declare an interest as a vice-president of the National Churches Trust and of the Lincolnshire Churches Trust, and one who has been a churchwarden for 36 years. It really is crucial that the Government recognise that the most important group of historic buildings in our country are our parish churches and give them some assistance. The Listed Places of Worship Grant Scheme is coming to an end, as my friend the right reverend Prelate said, and we do not wish to see the parish churches of England crumbling into decay.
I absolutely recognise the points that my noble friend is making, but the Listed Places of Worship Grant Scheme is making a real difference to churches, as recognised by the right reverend Prelate. It gives grants covering the VAT on repairs of over £1,000 to listed buildings used as places of worship. It is not coming to an end; it runs until the end of March 2025. Of course, any decisions for the spending review period after that will come in due course.
My Lords, have the Government undertaken a cost assessment of the number of schools that have asbestos in them and that are also affected by RAAC? They need replacing, because the children in these schools are currently at risk of exposure to asbestos fibres, and the same applies to many hospital buildings. Has there been a comparison of the costs of renovation versus replacement for these public buildings?
Both the Department of Health and the Department for Education are taking forward very careful programmes to address the issue of RAAC. As part of that, I am sure they will consider the most cost-effective way of addressing those issues. My noble friend Lady Barran is working very closely on the schools issue, to ensure that all schools affected by RAAC have it removed or remediated as soon as possible.
My Lords, will the Minister spare a thought for the small but significant number of people who live very modestly in listed buildings? I have to declare an interest, being one of those people. I live in a very small house which happens to be listed, in a conservation area. The business of repairing and maintaining it is extremely expensive and very difficult to achieve, partly because the planning system does not co-operate on very small interventions which could make a significant difference—for instance, insulation. What are the Government doing to help this situation?
I acknowledge the point that the noble Baroness has made. We are doing two things in this area. We have updated the National Planning Policy Framework so that, in determining planning applications, local planning authorities should give significant weight to the need to support energy efficiency and low-carbon heating improvements to existing buildings. Specifically on the practical planning barriers that households can face when they are in conservation areas or listed buildings, in our energy security strategy, published last year, we committed to reviewing the barriers that people in such buildings face. That review is under way and I believe that the outcome will be published shortly.
My Lords, I have relevant interests recorded in the register. I want to turn our attention to people’s homes. Some 20 years ago, Kirklees Council offered free loft and cavity wall insulation to every home, regardless of tenure. It was largely funded by energy companies, and 100,000 homes benefited from that scheme. Will the Government learn from that pioneering scheme and consider its introduction across the country in order to achieve the COP 28 agreement?