EIC urges VAT removal on retrofitting for circular economy

The Environmental Industries Commission (EIC) has put out a new policy paper urging both the government and industry to prioritize the circular economy in the UK's infrastructure development.

This publication comes ahead of the Government’s upcoming Circular Economy Strategy, which is set to roll out this autumn. The strategy will target six major sectors — textiles, transport, construction, agri-food, chemicals, and plastics — with the aim of minimizing waste and encouraging reuse throughout the economy.

Kate Jennings, the Chief Executive of the EIC, highlighted the crucial role of circularity, saying:

“The circular economy isn’t just an environmental solution — it’s a growth strategy that can reduce waste, enhance productivity, and safeguard the future of UK infrastructure. By reimagining our approach to design, construction, and reuse, the UK can tap into new markets, create jobs, and build resilient communities.”

Some key recommendations include:

• Eliminating VAT on retrofitting to promote reuse instead of demolition
• Integrating whole-life value into public procurement processes
• Testing carbon and circularity assessments on infrastructure projects
• Encouraging energy recovery while ensuring that landfill is a last resort

Philippa Spence, Managing Director of Ramboll and Chair of the EIC, added:

“The UK can’t achieve its growth or climate objectives without a fundamental shift in how we approach infrastructure. Circularity serves as the link between environmental needs and economic potential.”

The EIC is calling on policymakers and industry leaders to share their thoughts at policy@acenet.co.uk. You can find the complete policy paper on the EIC website.

Let’s talk about the ACE Group!

The Association for Consultancy and Engineering (ACE) is a collective of over 400 consultancy and engineering firms that play a crucial role in designing, delivering, and managing the infrastructure and built environment across the UK.
➡️ www.acenet.co.uk

On the other hand, the Environmental Industries Commission (EIC) represents a diverse range of companies in the environmental services and technology sectors, all committed to fostering a more sustainable and resource-efficient society.
➡️ www.eic-uk.co.uk

For media inquiries, feel free to reach out to:
Karen McLauchlan
📧 KMcLauchlan@acenet.co.uk