2-09-03

Barrett demands tax change to boost energy conservation

John Barrett, MP for Edinburgh West, has called on the UK Government to follow the example set by the Liberal Democrats and commit to reducing value added tax (VAT) on energy saving materials.

The Liberal Democrats have launched their policy paper "Conserving the Future" which outlines the energy policies which will form part of the party's next manifesto.  It will be debated by the party's Federal Conference in Brighton this September.

At the centre of the document is a commitment to reduce VAT on energy saving products from 15% to just 5%.  There is also a pledge to press the European Union to introduce a zero percent VAT for all energy saving materials.

The news follows a cross-party parliamentary motion, which called on the Government to take such action and backed by almost 250 MPs.  EDM 79 is now the 9th most popular backbench motion out of the 1,600 tabled this parliamentary session.

Commenting, John Barrett said:

"Poor loft insulation alone results in over 7.5 million tonnes of carbon dioxide being emitted into the atmosphere every year. It is clear that reform of the tax system is urgently required to encourage the use of energy saving materials.

"The Liberal Democrats have now shown our commitment to energy efficiency by publishing our energy policy paper and pledging to slash VAT on energy saving materials and pursuing our eventual goal of a zero percent rate through the E.U.

"A clear consensus is now developing over the need to provide better financial incentives which will help people to help the environment by making energy efficient materials less costly.  The standard has now been set by the Liberal Democrats, the UK Labour Government would do well to follow."
       
ENDS

Notes to Editors

• Mr Barrett is one of 249 MPs who have signed EDM 79 which states:

That this House notes that the Fuel Poverty Advisory Group has said that current programmes to deal with fuel poverty need to be increased by at least 50 per cent. if Government objectives are to be met; notes also that emissions of carbon dioxide have increased; believes that to reduce CO2 emissions and to help persons on low incomes to keep their homes warm VAT on the supply and installation of energy saving materials should be levied at the reduced rate of 5 per cent.; and therefore supports the terms of the Energy Saving Materials (reduced Rate of VAT) Bill 2002 introduced into this House by the honourable Member for Swindon South on 6th November.

• The Liberal Democrat policy paper, Conserving the Future, will be presented to the Party's annual autumn conference in Brighton, 21st-25th September 2003.