The government will be forced to back track on their Queen’s Speech promise not to raise VAT following a European decree. The decision by the Court of Justice of the European Union to ban the UK’s 5% rate of VAT on the supply and installation of energy-saving materials will force the government to raise VAT to the standard 20% rate. Unelected pen-pushers over-ruling a democratically elected government just weeks after an election.
The CJEU has form with these types of judgements, last year forcing Poland to apply the full rate of VAT to fire protection equipment. One for Dave to bring up with his new German friends.