Reaction to Chancellor’s Spring Statement

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BiKBBI CEO Damian Walters responds to Sunak’s Spring Statement:

The British Institute of Kitchen, Bedroom and Bathroom Installation (BiKBBI) has welcomed a 5p cut to fuel duty and no VAT on home energy-saving measures for next five years in today’s Spring Statement announcement.

Chancellor Rishi Sunak’s ‘mini-budget’ speech to the House of Commons this afternoon outlined targeted action on the cost of living, with particular help for those who are worse off. An increase to the National Insurance threshold resulting in 70% of workers paying less tax, in addition to the fuel duty cut and the incentive to invest in energy-saving in the face of rising energy costs, is good news for everyone.

BIKBBI CEO Damian Walters said:

“With economic uncertainty remaining unusually high as a result of the ongoing Covid recovery and now Russia’s invasion of the Ukraine pushing up costs, it is encouraging to see measures being adopted to help with the cost of living. There is no doubt that the reduction in fuel duty will be greatly received by our members, most of whom are SMEs and rely on their vehicles to work. That’s assuming that savings will be seen at the pumps and not absorbed by the retailer as some sources are suggesting.

And the news that VAT on home energy-saving initiatives is also a good thing for our sector, although an announcement by the Office for Budget Responsibility suggesting that real household disposable income is to fall 2.2% per person in the next 12 months, the largest financial-year fall since comparable records began in the 1950s, could be significant for the home improvement sector.

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