The Treasury needs to commit to a range of fiscal incentives to refurbish the UK’s existing housing stock in order to make it greener and more energy efficient, said the Federation of Master Builders (FMB) at the launch of a new report from Greenpeace on energy efficiency and jobs.

The report, which is launched ahead of the G20 summit and the Budget, said investing in energy efficiency measures will stimulate economic recovery, reduce climate change emissions, tackle fuel poverty, increase energy security and create tens of thousands of jobs.

Richard Diment, director general of the FMB, said: “Upgrading Britain’s homes to make them greener and more energy efficient needs to be an urgent priority for the Government. Targeted fiscal incentives such as a cut in VAT to 5% for property refurbishment would create the required demand for energy efficient improvements to our homes.

“Such a move would help the building industry when thousands of jobs are being lost, help householders to cut their energy bills, and help achieve the Government’s objective to cut carbon emission by 80% by 2050. Time is running out for indecision and action is needed now if we are to create a greener, more sustainable future for the UK.”