A modest proposal...
Say it costs £3K to replace a knackered boiler with another boiler, or £8K to replace it with a Heat Pump.
The Gov can borrow at 0.75%.
So one £5K grant costs the UK £37.50 a year (forever).
What if this was treated as a permanent tax on the house?
1/3
Say it costs £3K to replace a knackered boiler with another boiler, or £8K to replace it with a Heat Pump.
The Gov can borrow at 0.75%.
So one £5K grant costs the UK £37.50 a year (forever).
What if this was treated as a permanent tax on the house?
1/3
What if it just goes on the rates bill (except it doesn't rise with inflation - obviously - and in 100 years time £37.50 is < the price of a pint)?
Sod it - what if the grant/loan was all £8K (£60/yr)? So, when your boiler needs replacing you can find £3K yourself, or...
2/3
Sod it - what if the grant/loan was all £8K (£60/yr)? So, when your boiler needs replacing you can find £3K yourself, or...
2/3
get a HP "for free" (except you are attaching a £60/yr tax on the property forever).
Double-sod it: something similar for insulation.
At the end of the day the homeowner ends up with a new HP, new insulation, £300/yr lower heating bills, but £150/yr higher council tax.
3/3
Double-sod it: something similar for insulation.
At the end of the day the homeowner ends up with a new HP, new insulation, £300/yr lower heating bills, but £150/yr higher council tax.
3/3
P.S. Obviously one risk is that when the gilts that raised the money for the grant come to be rolled over in 15 years time, the interest rate might be 1.5% or 2%. And if that is passed onto the property tax, it might get unpleasant.
On the other hand, high interest signifies ...
On the other hand, high interest signifies ...
high inflation, so the actual principal is getting shrivelled away more rapidly, too.
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