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Industry figures have said the chancellor鈥檚 support for energy efficiency measures in yesterday鈥檚 spring statement will not do enough to decarbonise the UK鈥檚 housing stock or lower soaring energy bills for residents.

While figures across the housing and construction sector have welcomed the chancellor鈥檚 decision to bring in a long-called for zero-rate for VAT for the installation of energy-saving materials such as solar panels, insulation and heat pumps on domestic properties, Rishi Sunak stopped short of setting out a co-ordinated programme to retrofit UK homes, as demanded by the government鈥檚 own climate advisors.

The government itself promised to in its 2019 manifesto to spend 拢9.2bn on eco-upgrades to existing affordable housing but last year scrapped its 拢3bn Green Homes Grant programme just a year after launching it 鈥� after spending just a fraction of the cash pledged and amid widespread criticism of its performance.

Yesterday Sunak also said he was bringing forward a business rates exemption for companies investing in green technology, such as solar panels and battery storage, which was originally not due to come in until 2023.

Julie Hirigoyen, chief executive of the UK Green 好色先生TV Council, said yesterday鈥檚 measures were a welcome 鈥渇irst step鈥� which the UKGBC had called for and which sent a 鈥渦seful signal鈥� to industry and households.

But she added: 鈥淭he major barrier to large-scale action to upgrade the country鈥檚 draughty homes is still the government鈥檚 lack of serious funding, financial incentives and a national plan.

鈥淭his should start with fulfilling the 2019 election promise to spend 拢9.2bn on existing successful schemes for low income and social housing. We need to see an expansion of the small-scale Boiler Upgrade Scheme, a successor to the Green Homes Grant Scheme and long-term financial drivers such as a green stamp duty.鈥�

RIBA president Simon Allford said it was 鈥減ositive鈥� to see the Treasury promote energy efficiency but added: 鈥淭he government must now build on this. Decarbonisation and fuel poverty reduction both rely on a comprehensive National Retrofit Strategy with long-term funding and incentives. Today鈥檚 measures signal progress 鈥� but efforts must be rapidly scaled-up.鈥�

Brian Berry, chief executive of the Federation of Master Builders, which represents many SME housebuilders, gave much the same message. He said: 鈥淭his VAT cut will provide a much-needed boost to local builders operating in the retrofit market. The government now needs to build on the VAT cut and implement a long term National Retrofit Strategy to provide business certainty.鈥�

Nicholas Harris, chief executive at housing association Stonewater, said: 鈥淭he cut in VAT when investing in energy saving measures recognises the need for immediate action to make homes more fuel efficient.

鈥淗owever, housing associations like Stonewater with well advanced plans to retrofit homes at scale need funding from government and clearer policy direction on sustainable energy solutions.

Trevor Morriss, principal of housing architect SPPARC, said he was 鈥減leased鈥� to see Sunak鈥檚 measures, but added: 鈥淚 am concerned that this seems to be a reincarnation of the failed Green Homes Grant. If the government invested the same amount they are spending on the Palace of Westminster refurbishment into low-carbon heating solutions and insulation, almost 19 million homes could be upgraded by 2030.

The government鈥檚 net-zero advisor, the Climate Change Committee has found that 14% of UK emissions come from the UK鈥檚 29 million homes, and that progress on reducing emissions has stalled.

A report published in 2019 found there was no way of the government meeting the UK鈥檚 legally binding climate change targets without 鈥渢he near-complete elimination of greenhouse gas emissions from UK buildings鈥�, which would require Treasury treating retrofit of homes as a major UK infrastructure priority.