Asked by: Graham Leadbitter (Scottish National Party - Moray West, Nairn and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of classifying bi-directional EV charging as an Energy Saving Material.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The installation of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027. Following a Call for Evidence (CfE) last year, electrical storage batteries were one of the technologies added to the relief. However, as set out in the Government response to the CfE, at that time, the Government was unable to identify sufficient independent data regarding the efficiency of heat batteries. As such, they do not currently qualify for VAT relief.
EV charge points were also proposed to be added to the ESMs VAT relief by CfE respondents. However, they were not added to the relief, because their primary purpose is not to save energy or reduce carbon emissions, meaning EV charge points don’t meet the objectives of the relief.
The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.
Asked by: Graham Leadbitter (Scottish National Party - Moray West, Nairn and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will make an assessment of the potential (a) merits of introducing (i) an increased personal tax allowance, (ii) a tax code adjustment and (ii) other tax incentives for charity volunteers and (b) impact of such incentives on the (A) recruitment and (B) retention of such volunteers (1) in rural areas and (2) nationally.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government recognises the vital role charities plays in supporting individuals and communities, delivering a huge range of services up and down the country.
The government continues to support the sector and encourages people to volunteer. However, introducing a new tax code and tax incentives, or increasing the Personal Allowance to incentivise individuals to volunteer would make the system more complicated and difficult for taxpayers to navigate.
The government must prioritise ensuring the tax system supports strong public finances. Given the current state of the public spending inheritance, difficult choices are necessary. The Chancellor of the Exchequer has emphasised that sound fiscal policy is crucial for economic stability and growth, which are essential for keeping taxes as low as possible, while continuing to deliver high-quality public services.
Asked by: Graham Leadbitter (Scottish National Party - Moray West, Nairn and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support households with the cost of living.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government is working to improve living standards for everyone across the country, which is why growth is a key priority. This is why we have got to work straightaway implementing planning reform and establishing the National Wealth Fund and Great British Energy.
The approach of this government will centre on fostering good work. This government will reform employment support to offer more people the dignity and purpose of meaningful employment.
We have begun supporting households with the cost of living by launching a Ministerial Taskforce on child poverty and updating the Low Pay Commission's remit to reflect the cost of living when making recommendations on the National Living Wage.
Any further steps will be set out in due course.