NI Protocol leaves UK powerless to cut VAT on heating oil: Donaldson

Sir Jeffrey Donaldson has told the Commons that if the Chancellor sought to reduce VAT on “home heating oil”, he would need the permission of the European Union.
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The DUP leader insisted “this cannot be right”, claiming his constituents are being deprived of support because of the Northern Ireland Protocol.

He said: “At this time, households across all of the United Kingdom, including Northern Ireland, are struggling because of rapidly increasing home heating costs.

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“In Northern Ireland, we are subject to EU VAT rules. This means that if the Chancellor of the Exchequer sought to reduce VAT on home heating oil, he needs the permission of the European Union and all 27 member states to do such an action. Surely, this cannot be right that my constituents are being deprived of the support they need from government because of the protocol.”

DUP leader Sir Jeffrey Donaldson. Picture: Matt Mackey / Press Eye.DUP leader Sir Jeffrey Donaldson. Picture: Matt Mackey / Press Eye.
DUP leader Sir Jeffrey Donaldson. Picture: Matt Mackey / Press Eye.

Northern Ireland Secretary Brandon Lewis said Sir Jeffrey was right in “highlighting just another one of the many areas where the protocol is creating real problems on the ground for people in everyday lives”.

He added: “We must remember the protocol itself says it will not disrupt the everyday lives of people in their communities.

“He’s given yet another example where the protocol itself and the implementation of it is doing exactly that. That has to stop.”

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Meanwhile, Brandon Lewis has said the government would not rule out triggering Article 16 (unilateral action clause) despite calls from an SNP MP to take the measure off the table in light of the war in Ukraine.

SNP MP Deidre Brock asked if the government would rule out triggering Article 16 “once and for all”. She said war in Ukraine “threatens to undermine global food security including, of course, for those across these islands”.

She said triggering Article 16 would be “reckless and unnecessary even without a war raging on the European continent”.

Mr Lewis said: “Absolutely not. We are very clear that we’ve got to keep all options on the table. Article 16, of course, is part of the protocol and is the right way, if we can’t resolve these… is the proper legal process to take things forward.”

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