Energy Bills

Philip Hollobone Excerpts

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

I am surprised that the hon. Lady mentions SSE, because it has announced a £50 price cut from next year and a pledge to keep prices flat until spring 2015, subject obviously to wholesale energy costs. I would have thought that she would welcome SSE’s announcement.

[Mr Philip Hollobone (Kettering) (Con)]

The best way to cut electricity and gas bills would be to abolish VAT on them. Will the Secretary of State, as an enthusiast for the European Union, confirm that it is the European Union that prevents VAT from being removed? What efforts have he and the Chief Secretary to the Treasury made in Brussels to get a derogation from those restrictions?

[Mr Davey]

I am being tempted by my colleagues on the Back Benches. I hope they can cast their minds back to a former Conservative Government who wanted to put VAT at 17.5% on energy bills while my party campaigned against that. As I want to ensure that our coalition parties are working closely together, I respectfully repeat that that proposal would be against the law.