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<p>In recognition of the fact that families should not have to bear all the VAT costs
they incur to meet their energy needs, the Government already maintains a reduced
rate of 5 per cent VAT on the supply of domestic energy, at a cost of £5 billion per
year to the public finances.</p><p>Going further would impose additional pressure
on the public finances and that cost would have to be balanced by increased taxes
elsewhere, or by reductions in Government spending.</p><p>The Government keeps all
taxes under review.</p>
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