§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer (1) what assessment he has made of the effects of widening the VAT reduction to 5 per cent. on energy saving materials; [149099]
(2) if he will take steps to allow a stamp duty rebate at time of purchase for homebuyers installing energy efficiency measures; [149098]
(3) if he will introduce a new tax allowance for private landlords investing in energy efficiency. [149100]
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§ John HealeyThe Government are committed to improving household energy efficiency, as part of their programme to meet Energy White Paper targets. The Government routinely evaluate the impact of policy initiatives, including environmental tax measures. The Government have a long-standing commitment to pursue EU changes to permit a reduced rate of VAT for the DIY installation of energy saving materials, and have already applied a reduced rate of VAT for the installation of materials in certain other circumstances. The Government consulted on further measures to improve household energy efficiency in 2003, including a tax allowance for private landlords investing in energy efficiency. The Government also invited views on other possible policy initiatives. Responses were published and are being taken into account in further policy development. In the pre-Budget report (Cm 6042) we confirmed that we believe that there is a case for the further use of economic instruments as part of a package of measures to promote energy efficiency. A further announcement will be made around Budget 2004.