For example, the price of home-heating is now a serious problem, so what does the Government suggest? A return to zero VAT for heating fuel, which would lower the price instantly and significantly for everyone?
But that would also be illegal….can\’t zero rate heating fuel under European Union regulations.
Not to mention that it would also be a little stupid when we\’re trying to reduce emissions and homes account for some substantial portion of them (not sure of what the actual number is off the top of my head. 16%? 20%?)
Indeed, any government which was actually being sensible about the reduction of emissions would raise VAT on home energy back up to the 17.5% level that most other things pay….but of course we won\’t as the current special rate was one of Gordon Brown\’s innovations.
The rise would be a great deal simpler and more effective than pfaffing about with cap and trade.