The Prime Minister arrived in Brussels on Thursday for a summit of European Union leaders where he proposed cutting taxes on the greenest consumer goods.

Under common market rules, VAT is harmonised across the EU, and any reduction must be agreed by all 27 member states.

As part of the Government's environmental policy, Mr Brown wants to encourage households to buy domestic appliances that use less power and water.

VAT is levied on domestic goods at 17.5 per cent. Mr Brown says that could fall to 8.5 per cent, reducing the price of a £350 dishwasher by £27.

He said: "If Europe is serious about the environment we have to look at all means where we can reduce carbon emissions. I'm hoping to persuade our European colleagues. Lower tax can make a big difference to whether people buy environmentally-friendly goods."

However, only France has expressed any interest in supporting Mr Brown's plan, and the European Commission has given a lukewarm response.

Some officials fear that reopening discussion about VAT rates could expose Britain to renewed EU attempts to end the zero-rating for children's clothes, newspapers and public transport.