Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing VAT relief on (a) water, (b) electricity and (c) other essential infrastructure connections for off-grid rural communities.
HM Treasury keeps all taxes under review.
Existing rules mean that the supply of water to households is zero rated for VAT purposes and where a first-time connection is also provided by the water supplier then it may also be subject to the zero rate of VAT.
In addition, there is relief on domestic energy including a reduced rate for household fuel. Under EU law it is not possible to remove VAT on utilities infrastructure.