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EU Referendum: Vote Leave wants power to axe fuel VAT EU Referendum: Vote Leave wants power to axe fuel VAT
(about 3 hours later)
Leading figures in the campaign for Britain to leave the European Union say they want to be able to scrap VAT on fuel to help the poorest households.Leading figures in the campaign for Britain to leave the European Union say they want to be able to scrap VAT on fuel to help the poorest households.
Tories Michael Gove and Boris Johnson and Labour's Gisela Stuart wrote in the Sun that the tax on energy bills cannot be scrapped because of EU rules.Tories Michael Gove and Boris Johnson and Labour's Gisela Stuart wrote in the Sun that the tax on energy bills cannot be scrapped because of EU rules.
Meanwhile, the Remain campaign is focusing on businesses, saying they will be stronger and safer in the EU. Chancellor George Osborne said this was "fantasy land" economics.
Remain campaigners accused Vote Leave of promising a "make-believe land of milk and honey" if the UK left the EU.
There is one week left to register to vote in the EU referendum on 23 June.There is one week left to register to vote in the EU referendum on 23 June.
The Electoral Commission says that, even after recent surges in registrations, many people are still not signed up to vote.The Electoral Commission says that, even after recent surges in registrations, many people are still not signed up to vote.
In their article, the Vote Leave politicians said they would seek to spend some of the cash saved by quitting the EU on cutting VAT from household gas and electricity bills, a tax imposed by a Conservative government in 1993.In their article, the Vote Leave politicians said they would seek to spend some of the cash saved by quitting the EU on cutting VAT from household gas and electricity bills, a tax imposed by a Conservative government in 1993.
'Unfair and damaging'
"The least wealthy are hit particularly hard," they wrote."The least wealthy are hit particularly hard," they wrote.
"The poorest households spend three times more of their income on household energy bills than the richest households spend. As long as we are in the EU, we are not allowed to cut this tax."The poorest households spend three times more of their income on household energy bills than the richest households spend. As long as we are in the EU, we are not allowed to cut this tax.
"When we Vote Leave, we will be able to scrap this unfair and damaging tax."When we Vote Leave, we will be able to scrap this unfair and damaging tax.
"It isn't right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing.""It isn't right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing."
The BBC's political correspondent Iain Watson said critics would say as it is ministers and not campaigns that decide how public money is spent, there is no guarantee that a future government would scrap the VAT even with the freedom to do so. The BBC's political correspondent Iain Watson said critics would say it was ministers and not campaigns that decide how public money is spent, so there is no guarantee that a future government would scrap the VAT even with the freedom to do so.
Meanwhile, Business Secretary Sajid Javid will warn of the impact of leaving the UK on SMEs (small and medium-sized enterprises) later. Mr Osborne tweeted his attack on Vote Leave's claim, saying leaving the EU would lead to a smaller economy, "a hole in public finances" and higher taxes including VAT.
Remain campaigners are set to release a report later which they say will detail Leave's "unaffordable" spending commitments.
Meanwhile, Business Secretary Sajid Javid will warn of the impact of leaving the UK on small and medium-sized enterprises.
He will cite Department for Business, Innovation and Skills analysis, estimating that 8% export to the EU and a further 15% are in the supply chains of other businesses that export to the EU.He will cite Department for Business, Innovation and Skills analysis, estimating that 8% export to the EU and a further 15% are in the supply chains of other businesses that export to the EU.
Britain Stronger in Europe said that amounted to about 1.2m firms.Britain Stronger in Europe said that amounted to about 1.2m firms.
Mr Javid said: "Britain's small businesses are stronger, safer and better off in Europe.Mr Javid said: "Britain's small businesses are stronger, safer and better off in Europe.
"If we leave the EU, small firms are on the front line and that's a gamble with people's livelihoods I'm not willing to take.""If we leave the EU, small firms are on the front line and that's a gamble with people's livelihoods I'm not willing to take."
But Vote Leave questioned the figures and said business was held back by EU membership. But Vote Leave's John Longworth said the government's figures were "extremely questionable".
He said: "I agree with what Sajid Javid used to say about the EU - before he changed his mind for reasons we can only guess at.
"EU rules damage all British businesses, and smaller businesses in particular - and hold us back from trading freely with the rest of the world."