We Could Scrap VAT On Energy Bills - Vote Leave

The UK could scrap VAT on household energy bills if it left the EU, Vote Leave claims.

With less than a month left to persuade voters, Boris Johnson and Michael Gove have highlighted a potential sweetener that could save taxpayers £2bn.

Member states are not allowed to go below 5% VAT on gas and electricity bills - and that is the current rate in the UK.

But Mr Johnson and Mr Gove write in The Sun: "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. It isn't right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing. We'll also take back control of the VAT on fuel charged to motorists."

The potential change is also backed by Vote Leave chairwoman Gisela Stuart of Labour.

But fellow Labour MP and Remain campaigner Seema Malhotra argued quitting the EU would damage the economy with taxes and energy bills likely to go up.

She told Sky News: "What they claim they will gain will be outweighed hugely by what we will lose."

Meanwhile, Business Secretary Sajid Javid will visit Birmingham later quoting new figures that show 1.2 million small and medium-sized businesses either export to Europe or supply firms that do.

The Remain camp has been boosted by the endorsement of the physicist Professor Stephen Hawking as well as seven TV Dragons.

The bosses of Shell, Vodafone and Rolls-Royce are also among 51 business leaders to sign a letter backing the UK's membership of the 28-member bloc.

:: EU In or Out: David Cameron Live, Sky News 8pm Thursday, Michael Gove Live 8pm Friday.