§ Mr. David MarshallTo ask the Chancellor of the Exchequer if domestic fuel bills can be zero-rated in later years after being subject to a positive rate of VAT; and if he will make a statement.
§ Sir John CopeUnder the current EC sixth VAT directive agreed by the United Kingdom in 1976 an existing zero rate of VAT can be continued. Without a change in this directive a zero rate cannot be created, or reintroduced if ended as is proposed from next April for domestic fuel and power supplies. The directive can be changed only by the unanimous agreement of all member states.