Giving up the conservatory tax leaves the Green Deal in tatters

The government's flagship environmental policy is now tied to an unpopular measure – but they've got

We’ve had the granny tax, the pasty tax, and the caravan tax. This week the phrase "conservatory tax" was added to the lexicon of media uproar over Coalition plans.

The fuss, which started last week over an alleged attempt by the government to force honest homeowners to spend hard-earned cash on energy upgrades to their homes every time they get the builders in, has now been neutralised by heavy Downing Street briefing that Cameron will block the policy. 

However, the story of this debate about this previously obscure amendment to building regulations is particularly instructive as it goes to the heart of how the government has failed to fulfil Cameron’s pledge to be the "greenest government ever".

And furthermore, Cameron’s intervention may sound the death knell for the most genuinely progressive environmental policy from the Coalition, the Green Deal.

The story is complicated and has been widely misreported. Basically, it goes like this. In January Eric Pickles’ Communities department issued a consultation on changes to the part of building regulations that covers the energy performance of homes, called Part L. This contained a measure called, in Whitehall jargon "consequential improvements" – a policy twice considered by New Labour during its decade in office, and twice rejected by ministers as too controversial.

The policy says that whenever a homeowner makes a significant improvement to his or her home, then that home-owner also has to commit to making improvements to the energy efficiency of the rest of the house, to make it closer to the energy performance standards required in modern buildings.

Seen as vital by environmentalists, the policy makes a lot of sense in theory. More than a quarter of carbon emissions come from people’s homes. And while new houses are actually built to very high energy standards, only a very few homes are built each year, meaning the vast majority of the homes we’ll inhabit in 2050 have already been built. Therefore there is no chance of meeting the UK’s long-term carbon cutting targets without addressing the existing stock of leaky Victorian and Edwardian homes.

But clearly "consequential improvements" is politically tricky. The cost to home-owners – even more to home-improvers, the very definition of the aspirational middle class voters every politician wants to woo – is the exact reason Labour twice ditched similar plans. So why did Pickles think he could get away with it?

The answer is the Green Deal. This policy, due to come in to effect in October, will allow the upfront cost of work to increase the energy efficiency of homes to financed by the private sector. As a home owner, you then pay the cost back through your energy bills, but the scheme is designed so that the better energy efficiency of your home mean those bills will still be cheaper.

Vitally, the existence of the Green Deal meant "consequential improvements" – the so-called conservatory tax - could be introduced without triggering direct up-front costs to homeowners. Overall, quite a clever package. Together the two had the potential to be a genuinely game-changing move to make energy efficiency happen. 

But Cameron’s swift capitulation to the Daily Mail’s outrage (nevermind that your conservatory would have to be 30 sq metres to trigger the improvements), potentially leaves the Green Deal in tatters. 

The government itself predicts that without consequential improvements, the uptake of the Green Deal will be miserable. It’s estimates say that, as it coincides with the ending of the regime of utilities subsidising energy-efficiency measures, the number of loft and cavity wall insulation installations is set to plummet – by up to 93 per cent in the case of loft insulation.

The reason is that simply taking away the up-front cost of improving your home isn’t enough to get people to do it – given all the attendant hassle – even if it makes financial sense. Put simply, people just have better things to do with their time.

Consequential improvements had been seen as the one measure that could conquer this home-owner inertia. But, yet again, the Coalition seems to have shown itself unwilling to make the case for Green measures when under pressure. Consistently other priorities, notably those driven by theTreasury, win out.

As a result manufacturers of insulation fear their market being killed overnight. Meanwhile building contractors, 22 of whom signed up to deliver home-improvements under the Green Deal, are already starting to scale back their expectations of the work it will generate. The signals from the Department for Energy and Climate Change are that when October does arrive, the Green Deal roll out will be limited – essentially just a pilot.

For the industry, of course, it is not just the benefit of insulated homes that the Green Deal was expected to create, but a huge number of jobs – 65,000 was the government’s final estimate. This is now imperilled, with the inevitable impact upon economic growth (or lack of it).

Meanwhile, Tory sources seem to be briefing the Guardian that the whole thing is a mess created by the Lib Dems – even though the Green Deal was originally a Tory policy.

Unless urgent action is taken, the government’s flagship green policy in the built environment (one, incidentally, with almost total support from both greens and builders) will turn into a fiasco.

Two women speak in front of a conservatory. Photograph: Getty Images

Joey Gardiner is assistant editor at Building magazine

Felipe Araujo
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Hull revisited: What happens when a Brexit stronghold becomes City of Culture?

We report from Hull, to find out if you can replace the kind of nostalgia that led to a Leave vote with cultural investment.

At 75 metres long, the offshore wind turbine blade erected across Queen Victoria Square, in the heart of Hull, is a sculpture intended to mark a new chapter in the city’s history. For the next 12 months, Hull, a city of more than a quarter of a million people in the northeast of England, will be the UK’s City of Culture.

The 28-tonne blade hails from the local Siemens plant. The German technology company employs around 1,000 people in the area, making it Hull’s biggest single employer.

Seen up close in this context – laid dormant in the middle of a town square instead of spinning up in the air generating energy – the structure is meant to remind passersby of a giant sea creature. It is also, I’m told, an allusion to Hull’s rich maritime history.


All photos: Felipe Araujo

Nostalgia is a big thing in this part of the country. At one point, Hull was the UK’s third largest port but technology and privatisation drastically changed that. The battle over cod fishing with Iceland in the waters of the North Sea 40 years ago has also dealt a major blow to a region with a long and proud trawling tradition.

People here still talk about a bygone era when the fishing industry provided jobs for everyone and there was enough money to go around.

Fast forward to 2017, and the country’s new capital of culture is the same city that voted 67 per cent in favour of leaving the EU last June. Its new-found prestige, it seems, is not enough to erase years of neglect by a political class “too busy for commoners like us”, as one resident puts it.

“More than a message to Brussels, it [the Brexit vote] was a message to Westminster,” Paul Leeson-Taylor, a filmmaker born and bred in Hull, tells me. “For the first time in a long time people in Hull felt like they had the chance to change something, and they took it.”

But while speaking to people on the high street and hanging out with locals at the Community Boxing Club in Orchard Park, one of the city’s most deprived areas, there is one word that consistently popped up in conversation – more than any specific policy from Westminster or the much-hated rules “dictated” by Brussels. Foreigners.

According to official figures, Hull’s population is 89.1 per cent white British. Still, immigration is big on people’s minds here.

During my two-day stay in the city, I find myself being the only black person in most places I visit – I’m certainly the only black guy at the boxing club. So when someone begins a sentence with “I’m not racist but…”, I know a tirade on immigrants is about to ensue.

“There are just too many of them,” Nick Beach, an estate agent whose Polish clientele is a big part of his business, tells me as he is about to teach a boxing class to local children. Beach was born in Shepherd’s Bush, in West London, but has been living in Hull for the last 20 years.

“When I go down there these days and go into Westfield shopping centre, it is very rare you get an English person serving you now,” he says. “I just find it disappointing that you go into your capital city and you are a minority there.”

These are the much-discussed “left behind”, a white working-class community that has gained particular prominence in a time of Brexit and Donald Trump. Under economic pressure and facing social change, they want to have their say in running a country they claim to no longer recognise.

For Professor Simon Lee, a senior politics lecturer at the University of Hull, immigration is only a superficial layer when it comes to explaining the resentment I witness here. For him, the loss of the empire 70 years ago is still something that as a country Britain hasn’t come to terms with.

“The reason for us to be together as a United Kingdom has gone, so what is the project?”

As destiny would have it, a foreign company will now play a major role on Hull’s economic future, at least in the short term. In the wake of the Brexit vote, there were widespread fears Siemens would pull out of the region and take its factory elsewhere. With the massive blade looming large in the background, Jason Speedy, director of the blade factory in Hull, assures me that isn’t the case.

“The Brexit decision has made no difference. We have made our investment decision, so Siemens, together with the Association of British Ports, has put in £310m. It’s all full steam ahead.”

As Hull becomes the country’s cultural hub for the next few months, the hope is that its residents stop looking back and start looking forward.

For Professor Lee, though, until there is a complete change in the power structures that run the country, the north-south divide will remain – with or without the EU. “The way you kill nostalgia is to have something new,” he said. “The reason why people here are nostalgic is because there is nothing to replace it with.”

Felipe Araujo is a freelance journalist based in London. He writes about race, culture and sports. He covered the Rio Olympics and Paralympics on the ground for the New Statesman. He tweets @felipethejourno.