§ Mr. WigleyTo ask the Chancellor of the Exchequer if he will take steps in his next Budget to reduce the VAT rate payable on energy-saving materials; and if he will make a statement on the Government's policy on this. [99545]
§ Dawn PrimaroloThis Government have already reduced to 5 per cent.—the lowest level allowed under EC law—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.