Retailers call for domestic appliance scrappage scheme

The trade body today (August 17) revealed that it had written to Chancellor Alistair Darling urging him to explore the possibility of incentivising the purchase of energy saving products to kick-start households' move towards energy-efficiency.

In its submission to Mr Darling, which comes as the Chancellor begins drafting this autumn's Pre-Budget Report, the BRC said: “A clear signal should be given to households of the benefits of a switch to the most efficient energy products through the reduction or elimination of VAT on energy efficient and energy saving products.

“This could be kick started through time-limited scrappage schemes for those buying Energy Saving Recommended products,” it added.

The 'Energy Saving Recommended' scheme was launched by government-funded body the Energy Saving Trust in 2000, using a label on products such as domestic appliances, consumer electronics, lighting and heating to demonstrate that they meet energy-efficiency criteria.

In particular, the BRC called on the government to look at introducing incentives linked to the current digital TV switchover, warning that “purchases now will be locked in for years”.

Support

The BRC's support for a domestic appliance scrappage scheme echoes a similar call made by UK business body the Confederation of British Industry in the lead-up to this year's Budget, which was published in April (see letsrecycle.com story).

While no scheme was announced at that point, the similar vehicle scrappage scheme which was unveiled in the Budget as a means to boost sales of lower-emission cars and vans has since been hailed as a success.

Last week, it was revealed that over half the 300,000 vehicles expected to be dealt with under the initiative had been scrapped, less than three months after it was formally introduced (see letsrecycle.com story).

Objectives

Commenting on its support for a domestic appliance scrappage scheme, the BRC's director general, Stephen Robertson, said: “The Government's working against its own objectives when it sets targets for reducing carbon emissions while charging full VAT on the efficient products that will move us towards those targets.

“Retailers are already doing their bit to cut carbon but homes are responsible for 27% of the nation's emissions. Helping householders improve their performance has to be the next step.

“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 up front 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,” he added.