The Green Deal will fail unless the Government takes swift and decisive action to incentivise consumer demand for energy efficiency, warns the Federation of Master Builders (FMB).

According to a recent survey of all FMB members in Great Britain, more than 70% think a reduced rate of VAT would be a "successful" or "highly successful" way of encouraging their customers to commission energy efficiency work. Almost two thirds of FMB members (65%) think a free energy efficiency assessment would encourage more of their customers to improve the energy efficiency of their home.

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Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said: "It's time for the Government to accept the Green Deal has not been a success. The FMB has worked hard to promote the Green Deal to small construction firms, but until our members see a clear demand for Green Deal work and a more straightforward route to the Green Deal market, they will not engage with the scheme.

"The latest Government statistics show that just over 70,000 Green Deal assessments have been undertaken to date, but only 12 Green Deal Plans are 'live', demonstrating that a growing number of home owners want to improve the energy efficiency of their properties, but they aren't interested in paying for it using Green Deal finance. A reduction in VAT would reduce the overall cost of the work and make Green Deal finance more attractive to home owners who may be deterred by a large debt against their property."

(CD/JP)