Businesses and charities urge UK to drop VAT on refurbished and used electronics

A coalition of UK businesses, charities, and community groups is urging the government to remove VAT from all refurbished and repaired electronics. In a joint letter addressed to Environment Secretary Steve Reed, the signatories argue that eliminating VAT would reduce waste, promote reuse, lower costs for consumers and stimulate job creation.

Cost remains the main barrier

Currently, refurbished electronics sold by UK businesses are taxed at the same VAT rate as new products. Back Market’s UK General Manager Katy Medlock stated that price remains the number one factor influencing whether consumers choose a refurbished Apple iPhone or opt for a new device. “Cutting VAT would lower prices directly and make sustainable choices more attractive,” she said.

Repair must become more accessible

According to Suez UK’s Dr Adam Read, convenience is a major barrier. “Buying a new product is as easy as pressing a button on your phone. Repair feels slower and uncertain,” he said. Read argued that offering high-quality repairs at lower prices would spark significant demand from students, low-income households and budget-conscious consumers.

Communities and businesses back change

Fiona Dear of the Restart Project stressed the need for policy to catch up with community interest. “There’s growing innovation in large-scale repair and reuse,” she said, “but it remains too expensive and complex. Reducing VAT would ease this transition and encourage more sustainable practices.”

Job creation in the repair economy

The letter suggests that the UK repair economy could support 31,000 green jobs by 2035, and 80,000 by 2040. Read emphasised the growing popularity of repair skills among young people and their long-term value for the economy, comparing them to traditional trades like plumbing and carpentry.

Government response remains cautious

A Treasury spokesperson acknowledged the importance of reuse and confirmed that the UK’s circular economy taskforce is working on a national strategy. However, they declined to comment on any future tax changes, saying such decisions are made during fiscal events.