§ Mr. FlightTo ask the Chancellor of the Exchequer what estimate he has made of the income tax receipts foregone, since 1998, as a result of the Government's policy of levying a lower rate of VAT on the installation of energy-saving materials in homes. [91018]
§ John HealeyThere are no income tax receipts forgone but the cost to the Exchequer of the reduced rate of VAT on energy saving materials introduced in 1998 and extended in 2000 can be found in the relevant Financial Statement and Budget Reports. The cost is estimated at £5 million in 1998–99, £10 million in 1999–2000 and £45 million in subsequent years. The increased cost from 2000–01 results from to the extension of the reduced rates to installations in all homes.