Response from John Sinfield, Managing Director at Knauf Insulation, to the Labour Party’s ‘pledge’ yesterday of scrapping the Green Deal and its sister scheme, the Energy Companies Obligation.
“Without doubt, Green Deal and ECO are failing to deliver, having got off to an extremely slow and dismal start - but they can and should be made to work.
“We urgently need clarity on Labour’s plans for a replacement scheme and transition, as a change to policy has the potential to lead to further confusion in the market and risks making a bad situation a lot worse. If there is no Green Deal and ECO, what vehicle will draw private sector money in?
“Labour must accompany any announcements on changes to the schemes with an early intent to introduce demand drivers, such as a variable stamp duty. This will certainly stimulate demand now, rather than bring it to an absolute halt as people wait for a new election to act. Yes, Labour may risk supporting a coalition government policy, but it is the responsible thing to do if they want to support industry and help households to cut bills.
“Ultimately, having spent over three years developing these schemes, the energy efficiency industry desperately needs stability, as well as the reassurance of continuity and improvement.
“Now is the time to act to get existing homes fit for purpose, not deliberate further.”