Asked by: Steve Barclay (Conservative - North East Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the the cost exempting domestic heating oil from VAT.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
Domestic gas and electricity, including heating oil, already benefit from a reduced VAT rate of five per cent, rather than the standard 20 per cent. This reduced rate cost the Exchequer an estimated £7 billion in 2025-26.
The Government has no current plans to go further in zero rating heating oil from VAT. Were the government to go further here a costing would be provided in the usual way.