Baroness McIntosh of Pickering (Con)

My Lords, I once again thank the Minister for presenting and introducing the statutory instrument before us. I declare my interest as honorary president of National Energy Action, which, as I think the Minister will realise, is based in Newcastle, not a million miles from where he used to represent. I welcome the fact that the regulations propose to upgrade homes. I understand that upgrades and renovations such as this will attract VAT. The impact assessment does not show whether VAT has been applied. I am having a little campaign. I cannot launch it here because I have already launched it, but I would like to refer to it, if I may. It is not party policy, so it is my own little personal campaign, but our Front Bench here may want to adopt it as our policy. If we were to reverse VAT and put VAT on new build, zero-rated VAT on renovations would mean that we would have an increasing supply of older housing stock, which, I imagine, is just the type of housing stock that the Government intend to benefit from the proposals here. Therefore, the question is to what extent will VAT be attracted and why do the figures in the impact assessment not show whether VAT is included? If the figures are VAT-free, VAT will have to be added to them, obviously increasing them by 20% under the current plans. I will make a general comment about the warm homes discount that I was able to share with the Minister’s predecessor and that I wish to share with him in his new position. I welcome the fact that there is a warm homes discount. I regret that the sum involved, £350—I said this under the last Administration, when my own side were in government, and I repeat it now for the benefit of the current Government—has been that figure for a considerable time. Why have the Government chosen not to increase it for those who are clearly identified as being in the deepest of fuel poverty? That figure, I understand, is not being increased, but the Government have decided to give to a broader new raft of homes the smaller amount of £150.