£5.3 Million VAT Bill For Energy Savings Trust
Good Day My Friends
Hope youre all well. I thought I would post some news that is very topical and will have an impact upon the way in which Local Authorities and SHP's (Social Housing Providers) get support to deliver schemes and communicate the message about energy efficiency at a local level.
The Energy Savings Trust (EST) is having to drastically cut back on its front line energy efficiency activities following a government decision to charge VAT on the EST's grant funding.
Revenue and Customs has suddenly reversed previous policy and decided that the EST should no longer be able to claim back the VAT that it was able to reclaim on purchases for its external projects. The decision was backdated to this April. Effectively this leaves a £5.3m hole in the EST's 2004/5 budget.
Unfortunately this means that the EST has axed local Council support teams, and I understand will cease working with local authorities from October 06. I have also read that it will also stop consumer marketing later this year and reduce work on providing consumer awareness. This is as reported in the September edition of EIBI (Energy In Buildings & Industry magazine).
EST's Chief Executive, Philip Sellwood has been quoted as saying the decision is "disappointing".
There are far wider implications for private sector energy efficiency projects and Local Authorities and SHP's will have to work much harder and with less support resources to deliver their schemes. Unless, that is, they can outsource experienced and proven energy efficiency scheme management and delivery support from other alternative local agencies .... ?
Anyone who would like further information please by all means get in touch. I look forward to hearing from you soon. Thank you for your attention and enjoy your week
From Your Friend The Energy Angel