VAT on Fuel

HC Deb 29 November 1994 vol 250 c612W

Mr. Battle

To ask the Chancellor of the Exchequer what assessment he has made of the increase in VAT on fuel from April 1995 on the inflation rate.

Mr. Nelson

[holding answer 24 November 1994]: It is estimated that the increase in VAT on domestic fuel and power in April 1995 will add just over 0.4 per cent. to the retail prices index. Inflation is expected to remain well within the Government's target range 1–4 per cent. through the course of 1995. The imposition of VAT on domestic fuel and power is essential to raise revenue and to encourage energy conservation, contributing to Rio commitments on global warming.