Written question asked by Geoffrey Clifton-Brown (Conservative) on Tuesday, 24 October 2000, in the House of Commons. It was due for an answer on Tuesday, 31 October 2000. It was answered by Stephen Timms (Labour) on Tuesday, 31 October 2000 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, by how much (a) the pre-tax cost of a litre of domestic heating fuel, (b) the fuel duty on a litre and (c) the VAT on a litre has increased by (i) percentage and (ii) actual terms since January 1999; and how much additional revenue the Treasury has received as a result. - Including figures.

Answer: Mr. Clifton-Brown: To ask the Chancellor of the Exchequer by how much (a) the pre-tax cost of a litre of domestic heating fuel, (b) the fuel duty on a litre and (c) the VAT on a litre has increased by (i) percentage and (ii) actual terms since January 1999; and how much additional revenue the Treasury has received as a result. [135124] Mr. Timms: Information on the prices of different fuel products is available in "Energy Trends", published monthly by the DTI. There is no excise duty on standard grade heating oil. The rate of VAT applying to domestic heating oil has remained at 5 per cent. since it was reduced to that level from 8 per cent. in September 1997. Estimating the additional revenues accrued by the Government as a result of the rise in the price of heating oil is difficult because we need to make assumptions about the way in which consumers fund the rise in the price of fuel. If expenditure is diverted predominantly from standard rated goods towards expenditure on heating oil, VAT receipts may actually fall.

Secondary information