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Energy: Conservation

Volume 458: debated on Thursday 15 March 2007

To ask the Chancellor of the Exchequer which projects on energy efficiency in the public sector and increased access to the arts and culture have received funding under the Invest to Save-Inclusive Communities Budget since 4 April 2005; and how much each project received. (126869)

I refer the hon. Member to the written ministerial statement made by the former Chief Secretary to the Treasury, my right hon. Friend the Member for Kilmarnock and Loudoun (Des Browne) on 22 March 2006, Official Report, column 23WS.

To ask the Chancellor of the Exchequer what plans he has to introduce fiscal incentives to encourage households to introduce renewable energy and energy efficiency methods in their homes. (127142)

All taxes are kept under review and any changes are announced by the Chancellor as part of the Budget process.

The Government recognise the importance of household energy efficiency and renewable energy technology and since 1997 has introduced a number of measures in support of these. These include reduced VAT rates for the installation of energy saving materials such as insulation, draught-proofing, heating controls and also for micro-generation-technologies powered by renewable and sustainable energy sources. In addition, the Landlords Energy Saving Allowance (LESA) was introduced in 2004 to improve energy efficiency in the private rented sector. Pre-Budget report 2006 announced extensions to the scope of LESA as well as a stamp duty exemption for the majority of new zero-carbon homes. The pre-Budget report also announced that Finance Bill 2007 would include legislation to ensure that individual householders installing micro-generation are not subject to income tax on any payment for surplus electricity exported back to the grid.

The Government remain committed to meeting environmental challenges and continue to look for ways to promote household energy efficiency and renewable technologies through a range of tax and other policy measures.