'Cut VAT to tackle fuel poverty'

from the Midlothian Advertiser

The Government has been urged to act to tackle fuel poverty by slashing VAT.
The SNP's Alex Neil said almost a quarter of households in Scotland now live in fuel poverty - an increase of 5% since 2005.

The Central Scotland MSP has now lodged a motion at Holyrood calling on the UK Government to slash VAT on home improvements from 17.5% to 5%.

Mr Neil says the measure, which would be reserved to Westminster, would enable thousands of families to upgrade their homes to ensure they are more energy efficient.

He said: "The increase in fuel poverty means many people will have spent their Christmas and New Year at home in the cold.

"Fuel poverty can be a silent killer, particularly among the elderly, as people on low incomes feel for
ced to turn the thermostat down to save money."

The MSP says the Federation of Master Builders has argued that slashing the cost of VAT on building repair work would be a massive step in helping those on marginal incomes to properly insulate their homes.

"This is a sensible proposal, not requiring much effort from the UK Government, which would address a growing problem in Scotland," Mr Neil added.

"The simple fact is that winter is upon us, and we need to take action to help those who are most vulnerable to the effects of the cold. I want to see the UK Government take action and implement this VAT reduction."

A person is classified as living in fuel poverty if they spend more than 10% of their household income on heating bills. Vulnerable groups such as the elderly are seen as being particularly affected.