§ 21. Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what plans his Department has to use the tax system to encourage energy efficiency in housing. [151563]
§ 23. Mr. ChaytorTo ask the Chancellor of the Exchequer what plans he has to report on his Department's public consultation on fiscal measures to support energy efficiency. [151565]
§ John HealeyThe Government are already making extensive use of the tax system to encourage energy-efficient housing. We have introduced a reduced rate of 5 per cent. VAT for certain contractor-installed energy-saving materials, and grant-funded installation of central heating systems, heating appliances, factory-insulated hot water tanks, micro-CHP and renewable energy heating systems. The HM Treasury/DEFRA consultation on the use of economic instruments to promote household energy efficiency closed on 24 October 2003. The Government received 126 responses, and published a summary of responses on the Treasury web site on 11 December. Responses are being carefully considered as part of the Government's development of policy in this area. In the pre-Budget Report (Cm 6042), the Government announced that we believe that there is a case for further use of economic instruments as part of a package of measures to promote energy efficiency.
As a part of this work, the Government are continuing to examine the case for a domestic business tax allowance, and to explore the potential for capital allowances and VAT measures to help deliver this.