VAT: Energy

Treasury written question – answered on 5th March 2007.

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Photo of Lynne Jones Lynne Jones Labour, Birmingham, Selly Oak

To ask the Chancellor of the Exchequer what progress he is making in negotiations with EU partners on extending the categories of permitted reduced VAT rates to include energy efficient products and the purchase of energy saving materials for DIY installation.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

There have been no negotiations on reduced rates of VAT since ECOFIN reached agreement on 24 January 2006 (subject to confirmation, which was later received, by three member states) on an extension of the arrangements for reduced rates of VAT for labour-intensive services.

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