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16 SEP 2025

EIC CALLS TO SCRAP VAT ON RETROFITTING IN CIRCULAR ECONOMY OVERHAUL

The Environmental Industries Commission (EIC) has today launched a paper calling on government and industry to put the circular economy at the heart of UK infrastructure delivery.

The publication comes ahead of the government’s Circular Economy Strategy, expected this autumn, which will target six sectors - textiles, transport, construction, agri-food, chemicals and plastics - to cut waste and drive reuse.

Kate Jennings, CEO of the Environmental Industries Commission, said: “The circular economy is not just an environmental fix - it is a growth strategy that can cut waste, boost productivity and future-proof UK infrastructure. By rethinking how we design, build and reuse, the UK can unlock new markets, create jobs and deliver resilient communities.”

Recommendations include:

  • Scrap VAT on retrofitting to encourage reuse over demolition
  • Embed whole-life value in public procurement
  • Pilot carbon and circularity assessments on infrastructure projects
  • Incentivise energy recovery and make landfill a last resort

Philippa Spence, Managing Director of Ramboll and Chair of the EIC, said: “The UK cannot meet its growth or climate goals without systemic change in how we deliver infrastructure. Circularity is the bridge between environmental necessity and economic opportunity.”

EIC is inviting industry leaders and policymakers to join the conversation. Share your views at policy@acenet.co.uk. The full paper can also be found here

 

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Media Contact

Please contact Karen McLauchlan with any media queries for EIC.