Incentivising design quality and sustainability: VAT is a powerful tool and changing the rates can incentivise the sustainability agenda

Walter Menteth

Incentivising design quality and sustainability: VAT is a powerful tool and changing the rates can incentivise the sustainability agenda

Walter Menteth

Royal Institute of British Architects

Research output: Book/Report › Other report

171 Downloads (Pure)

Abstract

The majority of CO2 emissions in the built environment emanate from the existing building stock along with a smaller quanity from the process of new construction. The focus should therefore be on improving existing buildings wherever possible.

Current VAT rates incentivise CO2 emissions by distorting the construction market in favour of new build. In the residential sector, the current VAT rate encourages new build construction rather than improving existing buildings, even when saving energy. For private and public (public/private) finance the different VAT rates divert resources towards new construction.

Not only do current VAT rates incentivise emissions, they distort the market and its ability to respond to other policy objectives. This distortion is a major constraint for sustainable green procurement policy.

There is a need to reappraise ways in which the VAT system can be used to help progress the Government’s low carbon agenda, in a balanced, more fiscally neutral way.

Original language	English
Publisher	RIBA
Number of pages	11
Publication status	Published - Feb 2013

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 17 Partnerships for the Goals

Keywords

architecture
construction
procurement
VAT
policy
fiscal policy
retrofitting
refurbishment process
design

Access to Document

13_03_15_RIBA_VAT_ProposalsFinal published version, 282 KBLicence: Unspecified

https://www.architecture.com/

2 Article
1 Comment/debate
1 Artefact

Refurbishing old buildings reduces emissions – but outdated tax rates make it expensive
Menteth, W., 25 Oct 2019, The Conversation, p. 1.
Research output: Contribution to specialist publication › Article

Open Access
VAT reform would promote CO2 emissions reductions, more sustainable building & cost nothing – so why the delay: a Project Compass response to the Climate and Biodiversity Emergency objectives defined in ARCHITECTS DECLARE
Menteth, W., 26 Jul 2019, Project Compass 4 p.
Research output: Contribution to specialist publication › Article

Open Access
File
Sustainable retrofit of existing buildings. Stage Zero. Lesson 4. Fiscal incentives and funding opportunities
Menteth, W., 26 Sept 2017
Research output: Non-textual form › Artefact

Open Access
Sustainability in practice: VAT reform would promote sustainable building and cost nothing- so why the delay?
Menteth, W., 28 Feb 2014, In: Architects' Journal . 239, 8, p. 62
Research output: Contribution to journal › Comment/debate › peer-review

Open Access

EU VAT Rates: European comparative analysis appraising VAT impacts upon sustainable retrofitting in construction
Menteth, W. (Creator), Walter Menteth Architects, 15 Sept 2017
DOI: 10.17029/ab4093f7-4d6d-4e8c-81fb-a4cc0d8e67c6
Dataset

File

1 Membership of committee or panel
1 Membership of council
1 Invited talk

NET_LEARNING: New Energy to Rebuild
Menteth, W. (Keynote speaker)
12 Sept 2017
Activity: Talk or presentation types › Invited talk

File
Royal Institute of British Architects (External organisation)
Menteth, W. (Member)
Aug 2011 → Jul 2017
Activity: Membership types › Membership of council
Royal Institute of British Architects (External organisation)
Menteth, W. (Member)
2011 → 2013
Activity: Membership types › Membership of committee or panel

Cite this

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abstract = "The majority of CO2 emissions in the built environment emanate from the existing building stock along with a smaller quanity from the process of new construction. The focus should therefore be on improving existing buildings wherever possible. Current VAT rates incentivise CO2 emissions by distorting the construction market in favour of new build. In the residential sector, the current VAT rate encourages new build construction rather than improving existing buildings, even when saving energy. For private and public (public/private) finance the different VAT rates divert resources towards new construction. Not only do current VAT rates incentivise emissions, they distort the market and its ability to respond to other policy objectives. This distortion is a major constraint for sustainable green procurement policy. There is a need to reappraise ways in which the VAT system can be used to help progress the Government{\textquoteright}s low carbon agenda, in a balanced, more fiscally neutral way. ",

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KW - architecture

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KW - retrofitting

KW - refurbishment process

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ER -

Incentivising design quality and sustainability: VAT is a powerful tool and changing the rates can incentivise the sustainability agenda

Abstract

UN SDGs

Keywords

Access to Document

Fingerprint

Research output

Datasets

Activities

Cite this