Current status: Answered by Neil Gray on 13 January 2023
To ask the Scottish Government whether it will assess the potential of piloting a VAT offset or rebate scheme in Scotland that is focused initially on properties listed on the Buildings at Risk Register maintained by Historic Environment Scotland, in order to test its efficacy as an incentive to promote retrofit, renovation and reuse of Scotland's most at-risk built heritage.
Setting VAT rates is reserved to the UK Government, and remains a decision for HM Treasury. This issue affects heritage properties across all four nations of the UK and provides an opportunity for the UK Government to respond proactively to the global climate emergency. I wrote to Nigel Huddlestone MP, Parliamentary Under-Secretary of State for Sport, Tourism, Heritage and Civil Society, in February last year making the case for a VAT reduction to encourage and promote energy efficiency improvements in traditional buildings, unfortunately the UK Government has not indicated any willingness to consider the issue at this time.
The Scottish Government has already recognised in its housing strategy, Housing to 2040 , that reductions in VAT on household repairs would encourage home renovation in Scotland, and better equip homes for the challenges posed by climate change and the transition to net zero.
The Historic Environment Scotland publication, Guide to Energy Retrofit of Traditional Buildings addresses the common assumption that it is harder to improve the energy efficiency of older buildings, and enables the owners of traditional and historic properties in Scotland to make informed choices about the options available.
The Scottish Government will continue to call on the UK Government to introduce VAT reductions for traditional buildings and to work with stakeholders, including Historic Environment Scotland, to develop further solutions to transition Scotland’s historic buildings to net zero emissions while respecting and preserving their special characteristics.