Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a VAT exemption on installing solar panels for schools.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services, including solar panels purchased by schools. However, the Government operates VAT refund schemes which allow schools maintained by local authorities and academies to recover VAT paid on goods and services purchased in the course of providing free education.

Private schools that charge VAT on their fees may recover their VAT costs through the normal input tax rules.