A new year brings with it new opportunities for the window industry. Much hoped-for optimism hinges on the Government's ‘Green Deal’ and early indications are extremely positive. Couple this with the very interesting Department for Environment, Food and Rural Affairs (DEFRA) report entitled: ‘WIndows Sustainability Action Plan’, it is clear that the subject of fenestration is being taken seriuosly by Government. A particular paragraph in the DEFRA document makes for pleasing reading: “Windows were chosen for a roadmap because of their usage in virtually all buildings, significance in terms of energy and environmental performance of a building, and the strong record the industry
has in identifying and implementing sustainability improvements.”

Against this backdrop there are also significant areas of continued optimismn in the marketplace. The year 2011 should see conservatory sales rise as homeowners look for cost-effective ways to increase living space. Rising energy bills make energy-saving measures such as double-glazing extremely attractive. On the product-specific front, bi-folding and composite doors are now even more attractive as prices to consumers have become more realistic. On the horizon we could be seeing inventions such as solar panelled windows coming to the market within the next 5 years.

There has also been a very important legal victory for Everest against the HMRC recently that could have lasting effects. The national retailer received a £3m tax boost after a tax tribunal ruling over cashback offers it made to customers. The taxman had claimed that the cashback offer was really an inducement to take out a loan. The case centred on a 10% rebate offer to customers if they took out a loan with Clydesdale Bank to finance their windows, and kept the loan account open for 6 months. Under tax rules, the cashback reduces the value of the windows and therefore the liability to VAT. HMRC unsuccessfully argued that the offer was an attempt to get people to take out a loan, and was not related to the purchase of the windows. The loan would then be exempt from VAT. This could have far-reaching consequences for other retailers.

John Cowie - Editor