The plans would link green improvements to a property, not the owner, and allow people to buy green equipment for their home funded by the energy mortgage.

They would pay the loan back at a fixed rate that, with their reduced power bills, would be less than they were currently paying, before the improvements.

The secretary of state for energy and climate change was responding to a question in a debate about ECO-retrofitting from the show’s presenter Kevin McCloud.

Mr McCloud asked the secretary of state why the government charges VAT on retrofitting existing properties, but does not charge it when a building is torn down and rebuilt?

Mr Miliband agreed this was an ‘issue’ and promised to raise it with the chancellor, he then went on to talk about energy mortgages.

He said: “We do think energy companies, local authorities and high street names such as Tesco will be interested in financing these deals.”

Mr Miliband, who was speaking at the event to promote the Great British Refurb, also added he has been contacted by a number of local authorties about offering council tax discounts to home owners who carry out green improvements to their homes.

However, he did not say whether or not he would push ahead with this type of scheme or if he agreed with it.

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Luke Walsh

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