Businesses and charities urge UK to scrap VAT on refurbished electronics to tackle e-waste and cut household costs

Businesses, charities and community groups have joined forces to call on the UK government to scrap VAT on all repaired and refurbished electronics — a move they argue would cut waste, lower consumer costs and boost the country’s circular economy.

In an open letter to the new environment secretary Steve Reed, 25 organisations, including Currys, Back Market, Suez, the Restart Project and a network of repair cafés across the country, urged the government to remove the current 20% VAT charge on second-hand and repaired tech items sold by businesses.

The coalition says this policy change would encourage more people to choose pre-owned or repaired electronics over brand-new ones, helping households save money and curbing the UK’s growing e-waste problem. At present, VAT is applied at the same rate to a professionally refurbished smartphone or laptop as it is to a brand-new model.

“If we want to reduce e-waste by making refurbishment the norm, refurbished products must be as accessible as possible,” said Katy Medlock, UK general manager at Back Market, a global online marketplace for refurbished tech. “Cutting VAT would directly benefit consumers by lowering prices, making it a no-brainer for more people to choose sustainable options.”

The call for reform comes as ministers face growing pressure to overhaul policy to support the UK’s net zero and circular economy goals. With electronic goods accounting for a large share of consumer waste, campaigners say VAT reform would help remove one of the biggest barriers preventing people from embracing more sustainable consumption.

Cost and convenience remain key concerns, says Dr Adam Read, chief external affairs and sustainability officer at Suez UK, one of Britain’s largest waste and recycling companies. “People don’t go out and buy electronics in person anymore — they hit a button on their phone and a new toaster turns up 24 hours later,” he said. “Repair feels slow, uncertain and hard to access. But if you could get the same item for half the price from a trusted repair service, the demand would be huge — especially among students, lower-income families and frugal consumers.”

Fiona Dear, co-director at the Restart Project, said the VAT cut could unleash innovation and unlock growth in the “repair economy”. “There’s huge appetite from businesses and communities to keep more products in use — but it’s often harder and more expensive than it should be. Making repair and reuse simpler and cheaper would accelerate this movement.”

Advocates point out that the proposed tax cut would not only benefit consumers, but also create thousands of green jobs. Estimates suggest growth in the reuse and repair sector could generate 31,000 new jobs by 2035, rising to over 80,000 by 2040, many of them skilled, local roles in retail, logistics, and electronics.

“Young people are already signing up for courses in these trades,” said Read. “Repair and reuse roles will be just as vital to the future economy as carpenters and plumbers are today.”

The proposal comes as Labour’s new government pledges to make the UK economy greener and more resilient. But campaigners warn that policy action must move faster to match the ambition.

In response, a Treasury spokesperson said: “The government is committed to reducing waste, which is why our circular economy taskforce will help develop a strategy for England with a roadmap to increase the reuse and recycling of electrical equipment. The chancellor makes tax policy decisions at fiscal events. We do not comment on speculation around future changes to tax policy.”

The signatories of the letter hope the upcoming Autumn Statement will be the moment when ministers finally act. For now, all eyes are on the Treasury — and whether it will seize what campaigners are calling a “low-cost, high-impact” opportunity.

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Businesses and charities urge UK to scrap VAT on refurbished electronics to tackle e-waste and cut household costs