Businesses and charities urge the UK to abolish VAT on refurbished electronic products to deal with e-waste and cut household costs
Businesses, charities and community groups have joined forces to call on the UK government to abolish VAT on all repaired and refurbished electronics – a move they believe will reduce waste, reduce consumer costs and promote the country’s circular economy.
In an open letter to new environment minister Steve Reed, 25 organizations including curry, aftermarket, Suez, restart projects and the national network of repair cafes urged the government to remove the current 20% VAT fees in second-hand and repair technologies sold by businesses.
The coalition said the policy change would encourage more people to choose pre-used or repaired electronics rather than brand new ones, helping families save money and curb the growing e-waste problem in the UK. Currently, VAT is at the same speed as the brand new model, and is applied to professionally renovated smartphones or laptops at the same rate.
“If we want to reduce e-waste by doing renovation specifications, we have to access the refurbished products as much as possible,” said Katy Medlock, UK general manager of Back Market, the global online marketplace of renovation technology. “Taking into VAT will benefit consumers directly by lowering prices, which leaves more people with sustainable options powerless.”
The call for reforms is due to increasing pressure from ministers to overhaul policy reforms to support the UK’s net zero and circular economy goals. VAT reform will help remove one of the biggest barriers to accepting more sustainable consumption, campaigners say, as electronics make up a large portion of consumer waste.
Dr Adam Read, chief external affairs and sustainability officer at Suez UK, said cost and convenience remain a key issue, one of the largest waste and recycling companies in the UK. “People no longer go out and buy electronics in person – they press a button on their phone and a new toaster appears 24 hours later,” he said. “Repairs feel slow, uncertain and difficult to get. But if you can get the same item for half the price from a trusted repair service, the demand will be huge, especially among students, low-income families and frugal consumers.”
Fiona Dear, co-director of the RESTART project, said cutting VAT could unlock innovation and unlock growth in the “maintenance economy”. “Businesses and communities have a great appetite and can retain more products – but are often harder and more expensive than they should. Making repairs and reuse easier and cheaper can speed up this movement.”
Advocates point out that the proposed tax cuts will not only benefit consumers, but thousands of green jobs. Estimates suggest that growth in the reuse and maintenance sector could generate 31,000 new jobs by 2035 and to more than 80,000 jobs by 2040, many of which are skilled local roles in retail, logistics and electronics.
“Young people have signed up for courses in these industries,” Red said. “Repair and reuse roles are crucial to the future economy, just like carpenters and plumbers today.”
The proposal was promised by the new Labour government to make the British economy greener and more resilient. But campaigners warn that policy action must take a faster attitude to fit ambitions.
In response, the fiscal spokesman said: “The government is committed to reducing waste, which is why our circular economy working group will help develop England’s strategy through the roadmap to increase the reuse and recycling of electrical equipment. The Prime Minister makes tax policy decisions on Fiscal Events. We do not comment on future speculations about tax policy.”
The signatories of the letter hope that the upcoming autumn statement will be the moment when ministers finally act. At the moment, all eyes are focused on the Treasury – and whether it will seize the opportunity that activists call “low cost, high impact.”
