A coalition of 25 businesses, charities and community organisations is urging the UK government to scrap the 20% VAT rate on professionally repaired and refurbished electronics in a bid to tackle e-waste, reduce costs for consumers and boost the circular economy.
In an open letter to newly appointed Environment Secretary Steve Reed, major names including Currys, Back Market, Suez, the Restart Project and a nationwide network of repair cafés called for urgent reform. They argue that the current VAT regime discourages consumers from choosing refurbished goods over new products, hampering efforts to reduce the country’s growing mountain of electronic waste.
At present, refurbished smartphones, laptops and other devices sold by businesses are taxed at the same rate as brand-new ones, despite offering a more sustainable option. Campaigners say removing VAT on these items would make them more affordable, while supporting the UK’s environmental and economic goals.
“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. “Cutting VAT would directly benefit consumers by lowering prices, making it a no-brainer for more people to choose sustainable options.”
Supporters of the proposal argue that VAT reform would also spur growth in the so-called “repair economy”, generating thousands of green jobs in retail, logistics, and electronics services. According to industry estimates, the sector could create 31,000 new jobs by 2035 and more than 80,000 by 2040.
Fiona Dear, co-director at the Restart Project, said the policy shift could unlock innovation. “There’s huge appetite from businesses and communities to keep more products in use,” she said. “But it’s often harder and more expensive than it should be. Making repair and reuse simpler and cheaper would accelerate this movement.”
Dr Adam Read, chief external affairs and sustainability officer at Suez UK, added that affordability and convenience are still major barriers. “Repair feels slow, uncertain and hard to access,” he said. “But if you could get the same item for half the price from a trusted repair service, the demand would be huge.”
The call comes as Labour’s new government outlines plans to strengthen the green economy. Campaigners hope the upcoming Autumn Statement will include measures to encourage reuse and recycling of electronics.
A Treasury spokesperson responded by reiterating the government’s broader commitment to reducing waste, noting that tax decisions are made at fiscal events. “The chancellor makes tax policy decisions at fiscal events. We do not comment on speculation around future changes to tax policy,” the spokesperson said.
Campaigners remain hopeful that the Autumn Statement could mark a turning point, describing the VAT cut as a “low-cost, high-impact” solution.
