§ Mr. JenkinsTo ask the Chancellor of the Exchequer what discussions he has had on reducing the rate of VAT for fire prevention materials in the home. [66901]
§ John HealeyThe Chancellor has had no recent discussions on this specific subject. Under the longstanding agreements which govern VAT law across the European Union, member states are only permitted to introduce reduced rates of VAT for a prescribed list of goods and services set out in annex H of the sixth VAT directive. General 'fire prevention materials' for use in the home are not among the items included in the annex H list.
However, the UK's zero rate for the construction of new dwellings does include fire retardant building materials, as well as fire alarms, smoke detectors and fire safety equipment installed when a new home is being built. Similarly, the 5 per cent. reduced rate for residential conversions and renovations includes fire retardant building materials, fire alarms, smoke detectors and fire safety equipment installed at the time of the conversion.
We have also reduced to 5 per cent. the VAT on grant funded installation of smoke alarms when these are installed at the same time as energy saving materials or central heating systems. This is part of the VAT reduced rate introduced to support DEFRA's home energy efficiency scheme (HEES). HEES grants are primarily targeted at less well off people aged over 60 or receiving specified benefits, so the related reduced rate is similarly well targeted at those who need help most.