UK industry calls for VAT cuts on double glazing to support Net Zero

Campaigners and industry bodies are urging the UK Labour government to reduce the 20 per cent VAT rate on double glazing to support Net Zero targets and lower domestic energy bills. The Glass and Glazing Federation argues that without proper insulation, clean energy generated is lost, and that current VAT rates make windows less attractive for homeowners compared to other energy-saving materials like heat pumps.

Industry supporters suggest a VAT reduction would act as a “win-win” by boosting the domestic glass sector, which is currently facing pressure from rising costs and increased imports, while simultaneously improving household energy efficiency. However, the government has previously maintained that the primary purpose of double glazing is not energy saving.

Concurrently, debates regarding the economic impact of energy policy continue. Research by Shadow Energy Secretary Claire Coutinho and the think tank Onward suggests that the current push for a clean electricity grid may not deliver the promised affordability. Meanwhile, energy research group Cornwall Insight reports that average household bills are expected to see a 4 per cent increase this October, potentially offsetting previous savings.