Homeowners seeking to improve the energy efficiency of their properties have been given a boost in the spring statement after VAT on energy saving materials was scrapped.

Chancellor Rishi Sunak said with rising energy costs, it was now more important for homeowners to make sure their homes were as energy efficient as possible.

Sunak said for the next five years, VAT would be removed entirely on the likes of solar panels, heat pumps and insulation.

Prior to his announcement, improvements such as these were subject to a lower 5% VAT rate, but the chancellor criticised the “complex rules about who is eligible”.

“The reliefs used to be more generous but from 2019 the European Court of Justice required us to restrict its eligibility,” he told the Commons.

“But thanks to Brexit we’re no longer constrained by EU law.”

Sunak said his measures meant that a family installing solar panels would see a tax saving of roughly £1,000, while they would save approximately £300 on their energy bills.

The chancellor noted that the Northern Ireland protocol meant the policy could not be immediately applied to Northern Ireland, but that the government was raising this matter with the European Commission.

In the meantime, Sunak said, the Northern Ireland government would receive a Barnet formula share of the value of the savings.