§ Mr. Dafis
To ask the Chancellor of the Exchequer if he will place in the Library a copy of the letter sent by H.M. Customs and Excise to the European Commission DG XXI concerning the potential for reducing the rate of value-added tax levied upon energy saving materials and services, together with the reply received. 
§ Dawn Primarolo
[holding answer 4 March 1998]: Customs and Excise have advised the Commission that the Government intend to introduce a reduced rate of VAT for energy saving measures carried out under certain Government-funded schemes, and to explore the possibility of a reduced rate with wider application than European law presently allows. Customs did not expect, and have not received, a reply to the letter.
Publication of this letter is inappropriate under the Code of Practice on Access to Government Information.