HC Deb 11 February 1994 vol 237 c505W
Mr. Clelland

To ask the President of the Board of Trade what estimates he has made of the reductions in consumption of domestic fuel resulting from the imposition of value added tax.

Mr. Eggar

My Department has published a range of energy demand projections in "Energy Paper 59", a copy of which is in the Library of the House. Those projections showed domestic sector energy demand approximately 6 per cent. higher in 2000 than in 1990. The imposition of VAT on domestic fuels is expected, in the long run, to reduce domestic sector consumption of coal by about 2 per cent. and of electricity and gas by about 4 per cent. This takes no account of the effects of any offsetting measures.