European Union’s Lies About Fossil Fuel Subsidies – It’s Just Lower VAT On Household Energy Bills


The European Union has a report out telling us that the UK provides more fossil fuels subsidies than anywhere else. This is nonsense nonsense amounting to a lie. But then when did something like that ever stop The Guardian? Or the EU for that matter:

The UK leads the European Union in giving subsidies to fossil fuels, according to a report from the European commission. It found €12bn (£10.5bn) a year in support for fossil fuels in the UK, significantly more than the €8.3bn spent on renewable energy.

Nonsense. The report is here and the miserable little toerags don’t include the footnotes in it. So you can’t see which reports provide their evidence. Except for the dedicated researcher of course, who will find the report here.

On page 396 of which they tell us that it’s entirely possible that reduced tax rates – say, a lower VAT rate – upon domestic energy consumption shouldn’t be called a subsidy. But what the hell, they drop it in anyway and that’s what entirely drives the UK result. The 5% VAT rate.

But yes, of course, it gets worse. Because that lower rate applies to electricity derived from sunshine, from God’s flatus and so on. Therefore it’s most certainly not a subsidy to fossil fuels, is it?

And that’s it really, that’s all there is. They count what is not a subsidy, and certainly not one to fossil fuels, as a subsidy to fossil fuels.

Or, as we could put it, they’re lying. Good that we’re leaving on 29 March, isn’t it?

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Jim Georges

Thanks for ferreting this out for us!