Energy: Housing

Treasury written question – answered on 31st March 2022.

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Photo of Lord Dodds of Duncairn Lord Dodds of Duncairn DUP

To ask Her Majesty's Government what are the deficiencies in the Protocol on Ireland/Northern Ireland which prevent the VAT reduction applying to homeowners in Northern Ireland in respect of home energy saving materials, as referred to by the Chancellor of the Exchequer in his statement on 23 March.

Photo of Lord Dodds of Duncairn Lord Dodds of Duncairn DUP

To ask Her Majesty's Government when the removal of VAT on home energy products will take effect for homeowners in Northern Ireland.

Photo of Baroness Penn Baroness Penn Baroness in Waiting (HM Household) (Whip)

Under the Northern Ireland Protocol, EU VAT rules concerning goods – which restrict the introduction of new zero rates - continue to apply in Northern Ireland (NI).

We have been clear that a constructive solution must be found that ensures the whole of the UK can benefit from these reforms. The Government will raise this with the European Commission as soon as possible, within wider discussions regarding the NI Protocol.

In the interim, the Northern Ireland Executive will receive a Barnett share of the value of this relief.

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