A new green home agency and stamp duty rebates for energy-efficient home improvements, are among the proposals in UK Finance’s submission for this month’s Budget.

The banking association says the government should establish an energy efficiency agency “with clear long and medium-term delivery targets”.

It adds: “This should include offering clarity as to the date by which homeowners and landlords are expected to have made energy efficiency improvements to their homes.”

It argues that the UK should “train a new ‘green army’ of skilled workers to green the housing stock through an apprenticeship scheme”.

This comes after all rented homes will have to meet an energy performance certificate rating of C by the end of the decade, the government proposed last month.

Rightmove estimates this will mean an upgrade for 2.9 million properties, costing £23.4bn and averaging £8,074 per home.

UK Finance adds that the Treasury should give stamp duty rebates “to incentivise green home improvements” as well as making these upgrades VAT-free.

Chancellor Rachel Reeves will present Labour’s first Budget in 14 years on 30 October, which will attempt to plug a £22bn black hole in the public finances it says was left by the previous Conservative administration.

UK Finance points out that first-time buyers currently pay no stamp duty tax for home purchases under £425,000, this was raised from £300,000 as part of the mini-Budget in 2022.

However, this permanent move was later made temporary by former Chancellor Jeremy Hunt.

The banking body argues that “the nil rate band of £425,000 for FTBs should be made permanent”.

It adds that all stamp duty bands should be increased annually in line with the UK house price index.

UK Finance chief executive David Postings says:  “In our submission, we have called on the government to not only introduce measures to bolster growth, but also a range of ideas to help support households and businesses up and down the country.”