SCHEDULE A1

HC Deb 13 December 1994 vol 251 cc790-3

• Charge at Reduced Rate
• The supplies
1. 1.—
1. (1) The supplies falling within this paragraph are supplies for qualifying use of—
1. (a) coal, coke or other solid substances held out for sale solely as fuel;
2. (b) coal gas, water gas, producer gases or similar gases;
3. (c) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
4. (d) fuel oil, gas oil or kerosene; or
5. (e) electricity, heat or air-conditioning.
2. (2) In this paragraph "qualifying use" means—
1. (a) domestic use; or
2. (b) use by a charity otherwise than in the course or furtherance of a business.
3. (3) Where there is a supply of goods partly for qualifying use and partly not—
1. (a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and
2. (b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.
2. Interpretation
3. 2. For the purposes of this Schedule the following supplies are always for domestic use—
1. (a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
2. (b) a supply of wood, peat or charcoal not intended for sale by the recipient;
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3. (c) a supply to a person at any premises of piped gas (that is, gas within paragraph 1(1)(b) above, or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
4. (d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
5. (e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
6. (f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
7. (g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
4. 3.—
1. (1) For the purposes of this Schedule supplies not within paragraph 2 above are for domestic use if and only if the goods supplied are for use in—
1. (a) a building, or part of a building, which consists of a dwelling or number of dwellings;
2. (b) a building, or part of a building, used for a relevant residential purpose;
3. (c) self-catering holiday accommodation;
4. (d) a caravan; or
5. (e) a houseboat.
2. (2) For the purposes of this Schedule use for a relevant residential purpose means use as—
1. (a) a home or other institution providing residential accommodation for children;
2. (b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;
3. (c) a hospice;
4. (d) residential accommodation for students or school pupils;
5. (e) residential accommodation for members of any of the armed forces;
6. (f) a monastery, nunnery or similar establishment; or
7. (g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
8. except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.
3. (3) For the purposes of this Schedule self-catering holiday accommodation includes any accommodation advertised or held out as such.
4. (4) In this Schedule "houseboat" means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
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5. 4.—
1. (1) Paragraph 1(1)(a) above shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.
2. (2) Paragraph 1(1)(b) and (c) above shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable.
3. (3) Paragraph 1(1)(d) above shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979.
4. (4) In this Schedule "fuel oil" means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150 degreesC.
5. (5) In this Schedule "gas oil" means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240 degreesC and of which more than 50 per cent. by volume distils at a temperature not exceeding 340 degreesC.
6. (6) In this Schedule "kerosene" means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240 degreesC.
7. (7) In this Schedule "heavy oil" shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979."
6. (4) In section 97 (orders etc.) in subsection (4) (orders requiring approval) the following paragraph shall be inserted immediately before paragraph (a)—
• "(aa) an order under section 2(1C);".
7. (5) In Schedule 13 (transitional provisions and savings) paragraph 7 (fuel and power) shall be omitted.
8. (6) This Resolution shall apply in relation to any supply made on or after 1st April 1995 and any acquisition or importation taking place on or after that date.
9. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

This year's Budget is being debated on the Floor of the House rather frequently and at an earlier stage than usual. This debate should conclude our discussion of the tax measures that will take effect before the Finance Bill is introduced. It will also put in place, intact, the Budget judgment and keep the Government's economic policy on course.

A healthy economic recovery forms an essential background to the debate. The House is familiar with the Government's record of growth, rising industrial production, rising manufacturing production, falling unemployment and good records on productivity and inflation. We know that the recovery must be sustained and made stronger to deliver the prosperity and the increased number of jobs that are essential aims of all economic policy.

Keeping our recovery going and ensuring that it is one of the strongest and most effective in the developed world imposes certain duties and obligations on the Government and the House of Commons. In order to sustain our recovery and to keep it strong, we must keep inflation down so that high inflation does not halt recovery again, as it often has in the past. We must also ensure that we can deliver healthy public finances.

The Government have other obligations, such as supporting increased competitiveness in industry, but our two preconditions for a sustained and strong recovery are to deliver a macro-economic climate in which inflation is low and to deliver healthy public finances as quickly as we can upon emerging from the recession.

I emphasise those points because they underline the decisions that the House is being asked to take. We are growing so strongly and the business community is so optimistic about the outlook for output and jobs because the Government are on top of the job of keeping inflation down and delivering healthy public finances.