Written Question·Treasury·UIN 101700
Energy: Taxation
Tabled: 18 December 2025
Answered: 8 January 2026
Question
Neil Duncan-Jordan
Labour — Poole
To ask the Chancellor of the Exchequer, with reference to Budget 2025, what assessment her Department has made of the potential impact of the proposed scrapping of the Energy Company Obligation scheme on the level of energy sector tax revenue.
Answer
Dan TomlinsonThe Energy Company Obligation is a regulated obligation on suppliers and is not a tax measure. However, as VAT is placed on the total cost of energy, lowering energy bills through ending this scheme will reduce the tax base for VAT on domestic energy. Thi...
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