Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made with the Secretary of State for Energy Security and Net Zero, of the potential merits of removing VAT from refrigerants used in heat pumps.

No assessment has been made. The installation of certain energy-saving materials, including ground- and air- source heat pumps, in residential accommodation and charity buildings benefits from a temporary zero rate of VAT until 31 March 2027 (after which it reverts to the reduced rate of 5 per cent).

There are currently no plans to extend this relief to include the sale of the components used in energy-saving materials, where they are not part of such an installation. However, the Chancellor keeps all taxes under review.