Energy: VAT

(asked on 19th October 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to cut VAT by five per cent on energy bills in the Autumn Budget.


Answered by
Lord Agnew of Oulton Portrait
Lord Agnew of Oulton
This question was answered on 2nd November 2021

In recognition of the fact that families should not have to bear all of the VAT costs they incur to meet their energy needs, the Government already maintains a reduced rate of 5 per cent VAT on the supply of domestic energy, at a cost to the public finances of £5 billion per year.

Going further would impose additional pressure on the public finances and that cost would have to be balanced by increased taxes elsewhere or reductions in Government spending.

The Government keeps all taxes under review.

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