§ Mr. ChaytorTo ask the Chancellor of the Exchequer if he will make a statement on the French Government's decision to reduce VAT on energy-saving materials. [103474]
§ Mr. TimmsThe French reduced rate is for the renovation and repair of private dwellings and has been introduced under the new Annex K of the Sixth VAT Directive. The French have not introduced a reduced rate for DIY energy saving materials, since the reduced rate in Annex K may be applied only to labour intensive services.
§ Mr. ChaytorTo ask the Chancellor of the Exchequer what plans he has to reduce VAT on energy-saving materials. [103473]
§ Mr. TimmsThis Government have already reduced to 5 per cent. the VAT rate applicable to grant-funded installation of energy saving materials in the homes of the less well off. EC VAT law does not allow the UK to apply a reduced VAT rate to sales of energy saving materials for DIY installation.