§ Mr. StunellTo ask the Chancellor of the Exchequer, pursuant to page 78 of the Red Book what estimate he has made of(a)the reduction in greenhouse gas emissions which will result from the reduced VAT rate on the installation of energy saving materials under certain grant schemes and (b) the impact on local air quality. [36857]
§ Dawn PrimaroloOur reduced VAT rate relief for energy saving materials is primarily a social measure, allowing less well-off people to stay warmer. Nevertheless, the measure will have small environmental impact.
Any estimate of environmental impact is subject to significant margins of uncertainty, but the likely impact is that between about 3,000 and 7,000 tonnes of carbon will be saved each year, assuming that 40,000 extra 623W households have basic energy efficiency measures undertaken as a result of this new relief. By the year 2010, the total annual carbon saving will be between about 35,000 tonnes and 80,000 tonnes.
This measure is not aimed at improving local air quality, but there may be some small benefit as a result of lower fuel consumption. A range of other measures in the Budget will have a much greater impact in terms of local air quality—for example, the duty rises for standard diesel, and vehicle excise duty discounts for clean lorries and buses.