Possible question for @RishiSunak … would he guarantee that his proposed cut to VAT on domestic energy bills extends to Northern Ireland? A simple question with a complex background… a short thread … #ConservativeLeadershipContest
There are those who doubt Rishi Sunak’s commitment to the completion of Brexit as regards NI - I’ve no idea if that’s fair - but he has an excellent opportunity to put the matter beyond doubt …
If the answer to the question above is yes, it’s a clear sign of his commitment, if it’s no (or some non answer) that’s a pretty clear sign of his intentions too …
A reminder… by virtue of the NI Protocol, conventional wisdom* suggests a reduction in VAT on energy bills for NI below 5% requires approval from the European Commission …
*it’s somewhat complex as you might see from this … committees.parliament.uk/committee/69/e…
However changes to VAT arrangements (I hope I’m right about this) are implemented by way of amendments to the Value Added Tax Act 1994 …
Also worth pausing to note that as a Money bill the capacity of the Lords to block or delay is significantly reduced …
There appears to be nothing in U.K. domestic law to prevent Parliament legislating to extend new VAT arrangements to NI (notwithstanding the provisions of the European Union (Withdrawal) Act 2018 - the act which gives domestic legal force to the protocol.
Anyone who has followed the Allister Judicial Review application will be familiar with the doctrine of implied repeal in all its aspects!
Of course there are the same international law issues as with the NI protocol bill which makes this an early test of genuine commitment to fix the protocol…
I should say this thread offers no view on the wisdom (or otherwise) of the policy choices involved. It focuses only on the implications for Northern Ireland and the protocol…
If I’ve got some of the fundamentals about this wrong I’ll delete the thread and we will say no more about it, but if I’m right it could be a real test for Rishi Sunak …
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