Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if her Department will add heat batteries for a central heating system to the list of energy saving materials that are zero-rated.

The installation of qualifying energy-saving materials in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027.

Last year, a Call for Evidence (CfE) seeking views on additional technologies to potentially include within this relief was run. Heat batteries were one of the technologies put forwards by respondents. As set out in the Government response to the CfE, at that time, the Government was unable to identify sufficient independent data regarding the efficiency of heat batteries, making it difficult to assess the technology’s energy-saving properties objectively.

The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.