§ Mr. DrewTo ask the Chancellor of the Exchequer if he will make a statement on the current VAT regime affecting renewable energy materials and their installation. [1365]
§ Mr. BoatengA reduced rate of 5 per cent. was introduced last year on the supply and installation, in residential accommodation, of goods whose primary purpose is to save energy. Energy-saving materials sold direct to the public are not included in the list of goods and services to which, under agreements with our European partners, a reduced rate of VAT may apply. The Government are in favour of extending the reduced rate to cover these DIY installations and have raised this with the European Commission.