BRC calls for ‘fridge scrappage’ scheme

Energy efficient appliances should be made exempt from VAT and a car-industry-style scrappage scheme introduced, says the British Retail Consortium (BRC).


Energy efficient appliances should be made exempt from VAT and a car-industry-style scrappage scheme introduced, says the British Retail Consortium (BRC).

Energy efficient appliances should be made exempt from VAT and a car-industry-style scrappage scheme introduced, says the British Retail Consortium (BRC).

The body claims that creating incentives for households to improve their energy efficiency will address the problem of climate change, support retail jobs, revive high streets and promote investment.

Stephen Robertson, director general of the BRC, says: ‘A modern, efficient fridge-freezer uses less than half the energy of a 1995 model. Over its lifetime it can pay for itself but having to find the cost upfront puts customers off upgrading – particularly in a recession.’

‘Removing VAT and exploring the possibility of a scrappage scheme would do a lot to get old energy and water-squandering appliances out of people’s homes.’

The BRC claims CO2 emissions could be reduced by 1.3 million tonnes each year by 2020 as a result of the VAT exemption.

It estimates that there are currently 15 million fridges, freezers and washing machines over ten years old in the UK.

According to the Society for Motor Manufacturers and Traders, car registrations rose by 2.4 per cent in July – the first growth in 15 months – due to the government’s car scrappage scheme which gives consumers a £2,000 grant to trade in old vehicles.

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