RTTNews - Monday, the British Retail Consortium called for a car-industry-style scrappage scheme for energy efficient home appliances like fridge freezers and washing machine, which would help households to cut their fuel bills.

The BRC urged the government to remove value added tax from energy efficient appliances, which would cost GBP 507 million per year in lost VAT receipts.

A modern, efficient fridge-freezer uses less than half the energy of a 1995 model. Over its lifetime it can pay for itself but having to find the cost up front puts customers off upgrading - particularly in a recession, BRC Director General Stephen Robertson said.

The British government in May launched a car-scrappage scheme, under which motorists would be given an incentive of GBP 2,000 to buy a new car, scrapping their old vehicle that are used for more than ten years. Earlier this month, the government said the car-scrappage scheme has been a real success with orders hitting 154,927.

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