Energy: VAT

(asked on 18th October 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce VAT on energy bills for families in the UK.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 21st October 2021

In recognition of the fact that families should not have to bear all the VAT costs they incur to meet their energy needs, the Government already maintains a reduced rate of 5 per cent VAT on the supply of domestic energy, at a cost of £5 billion per year to the public finances.

Going further would impose additional pressure on the public finances and that cost would have to be balanced by increased taxes elsewhere, or by reductions in Government spending.

The Government keeps all taxes under review.

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