Green Deal tax cuts 'break EU law'

The Government is being taken to court by Brussels for offering across-the-board tax cuts to encourage homeowners to make their houses more energy-efficient.

The European Commission claimed that, under EU rules, such VAT reductions must be linked to "social policy" and warned in a statement: "The Commission is aware that the reduced VAT rate for energy-saving materials has been linked to the UK's 'Green Deal' to improve the energy efficiency of buildings.
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