§ Mr. Canavanasked the Chancellor of the Exchequer whether he will consider making home insulation materials exempt from value added tax in order to encourage conservation of energy and improve employment prospects in the industry.
§ Mr. Peter ReesThe relief suggested is already provided to a considerable extent for materials supplied in connection with VAT zero-rated building construction and alteration work. As regards such materials supplied on their own, or in other circumstances, the financial benefits of adequate thermal insulation and energy conservation are well known, and a special VAT relief would be inconsistent with the nature and purpose of VAT.