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.

Meanwhile, Business Secretary Sajid Javid will visit Birmingham today 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 seven TV Dragons - as well as Professor Stephen Hawking.

The physicist told ITV's Good Morning Britain: "The exchange of people enables skills to transfer more quickly, and brings new people with different ideas, derived from their different backgrounds.

"Without this exchange, we would become more culturally isolated and insular, and ultimately more remote from where progress is being made.

"The other reason is financial. The European Research Council has given large grants to UK institutions, either to foster research, or to promote exchanges.

"These grants are in addition to those given by the traditional UK research councils, which seem to be becoming progressively starved of resources, by a government intent on short-term cuts, without attention to the longer term consequences."

A group of seven past and present members of the Dragons' Den panel of leading entrepreneurs said they were "in" because Brexit posed a "serious risk" to the UK economy.

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