VAT ON ENERGY BILLS

That this House deeply regrets the energy price rises announced by British Gas, NPower, SSE, Scottish Power and EDF in recent weeks and the damage that rising prices will do to consumers' costs of living; notes that VAT on energy bills is levied at five per cent, which currently equates to around £65 on the average domestic dual fuel bill; further notes that essential items such as food and children's clothing are subject to a zero per cent rate of VAT; believes that heating and lighting a home is also essential; further regrets that the European Union (EU) has control over VAT rates; calls on the Government to make the repatriation of control over VAT rates from the EU a priority in any forthcoming treaty negotiations; and further calls on the Government to do all it can in the meantime to secure EU agreement to make energy bills subject to a zero per cent rate of VAT as part of an effort to deliver sustainable and long-term help to hard-pressed bill payers.