Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Housing, Communities and Local Government on the potential cost benefits of reducing VAT on (a) building products and (b) low-carbon technologies used to retrofit homes to improve (i) indoor air quality, (ii) energy efficiency and (iii) the health of occupants.
The Government already makes available a reduced rate of VAT on the installation of energy efficient products, including solar panels and micro combined heat and power units, when certain conditions are met.
Extending the current VAT relief would come at a significant cost to the Exchequer, and there are no current plans to extend the scope of the relief already in place. However, the Government keeps all taxes under review.