The proposal is part of the ‘Balanced Approach to Sustainable Recovery’ document the BRC is sending to Chancellor Alistair Darling today (17 August).
The BRC aims to set out incentives for households to become more energy efficient and suggests that the government removes VAT from greener appliances, to encourage households to upgrade from older, less energy efficient appliances.
Stephen Robertson, British Retail Consortium Director General, said: “The Government’s working against its own objectives when it sets targets for reducing carbon emissions while charging full VAT on the efficient products that will move us towards those targets.
“Retailers are already doing their bit to cut carbon but homes are responsible for 27 per cent of the nation’s emissions. Helping householders improve their performance has to be the next step.
The BRC also put forward proposals to revive high streets, protect jobs and promote investment in the retail sector.