To ask the Chancellor of the Exchequer, pursuant to his answer of 25 February 1998, Official Report, column 234, relating to VAT relief on energy saving measures, if the measures proposed include relief on materials. [33050]

[holding answer 6 March 1998]: Yes. The reduced rate we announced in the Pre-Budget Report will apply to the installation of energy saving materials, including the value of the materials themselves, to the extent that the installation is funded by grant schemes designed to assist the less well-off.As the Customs and Excise report "Helping the Less Well-Off Save Energy" made clear, a reduced rate for materials alone, for DIY installation, would require agreement with other member states for changes to European law.