Fuels: VAT
Commons · Question 10036 · Tabled 15 Jun 2026 · Treasury · Official record
Answered 23 Jun 2026
Question
Asked by Iqbal Mohamed
To ask the Chancellor of the Exchequer, what assessment she has made of the level of additional VAT revenue accruing to the Exchequer as a result of recent increases in fuel prices; and whether she has considered using additional VAT receipts to provide f
Answer
Answered by Dan Tomlinson, 23 Jun 2026
There is no VAT windfall from rising fuel or energy prices. The OBR assumes a direct offset, with higher spending on fuel largely matched by reduced spending elsewhere, leaving overall VAT receipts broadly unchanged. Previous OBR analysis also shows that ...