Oral Answers to Questions

Caroline Lucas Excerpts

Tuesday 19th April 2016 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

10. What fiscal steps he is taking to support the development of solar power.

[The Exchequer Secretary to the Treasury (Damian Hinds)]

We are continuing our support for solar, keeping the small-scale feed-in tariff scheme open beyond January 2016, setting tariffs on a path to help transition the industry to a sustainable, subsidy-free future.

[Caroline Lucas]

I thank the Exchequer Secretary for that very short answer. Given that the EU’s VAT reform action plan will give Governments discretion in applying rates of VAT, including on solar power, will he confirm categorically to solar installers in my constituency that the UK has officially and permanently dropped the proposal to hike solar VAT to 20%?

[Damian Hinds]

The reduced rate of VAT remains in place on all 11 of the categories of energy saving materials. Following the decision by the European Court, we have consulted interested parties on the issue and, given the complexities involved, we are still considering the responses.