Commons Sense

House of Commons · Ministers' Questions

VAT: Domestic Fuel

Tuesday 28 June 2022 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Neale Hanvey inquired about discussions on zero-rating VAT for domestic fuel due to fuel poverty in Scotland.
  • Neale Hanvey asked about the difference in heating oil usage between London and rural areas like Lincolnshire and Scotland.
  • The response indicated that more people use heating oil in rural areas, and both the Treasury and BEIS are examining energy issues to protect all individuals.

Topics (select to filter)

Questions & Answers

Q1 Neale Hanvey
Taxation Scotland Energy
Context

The question pertains to the impact of VAT on rising fuel bills and its effect on households in fuel poverty, particularly in Scotland.

Question

What recent discussions he has had with Cabinet colleagues and stakeholders on the potential merits of zero-rating VAT on domestic fuel. VAT on domestic fuel continues to be levied on rising fuel bills while one in three Scots households live in fuel poverty. With 8% of the UK population, Scotland has 96% of the UK's crude oil reserves, 63% of the UK's natural gas reserves, 90% of the UK's hydropower and 25% of Europe's offshore wind and tidal resources. Scotland's vast energy potential far exceeds the needs of our people yet we receive no revenue.

Answer from Lucy Frazer

We recognise Scotland's contribution to energy across the country and the fantastic industry that we have in Scotland. The hon Member will know that Scotland has a record sum this year in terms of money that comes through the Treasury, through the Budget and through the Barnett formula.

Partly answered

Not addressed: The value of Scotland's energy to the UK Treasury and the plan for servicing debts following potential independence were not addressed.

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Q2 Neale Hanvey
Taxation Energy
Context

The question follows a discussion about VAT on domestic fuel, focusing on the proportion of people using heating oil in different regions.

Question

The original question was about heating fuel, and I wonder if the Minister could let us know the proportion of people in London who use heating oil compared with those out in rural areas such as Lincolnshire or even in Scotland?

Answer from Lucy Frazer

My hon Friend is right: more people use heating oil in rural areas, and the Treasury and the Department for Business, Energy and Industrial Strategy are looking at energy across the board to ensure that all people are protected.

Partly answered

Not addressed: The proportion of people using heating oil in London compared with those in rural areas was not provided.

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Q3 Karl McCartney Con
Taxation Energy
Context

The question follows a discussion about VAT on domestic fuel, focusing on the proportion of people using heating oil in different regions.

Question

The original question was about heating fuel, and I wonder if the Minister could let us know the proportion of people in London who use heating oil compared with those out in rural areas such as Lincolnshire or even in Scotland?

Answer from Lucy Frazer

My hon Friend is right: more people use heating oil in rural areas, and the Treasury and the Department for Business, Energy and Industrial Strategy are looking at energy across the board to ensure that all people are protected.

Partly answered

Not addressed: The proportion of people using heating oil in London compared with those in rural areas was not provided.

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