§ As far as VAT and young children's clothing is concerned, we went over this ground at great length during last year's debates, and I can sum up my decision by saying on Shrove Tuesday, the traditional day of repentance: "I was wrong". It will be zero-rated.
§ But it is essential that the criteria should be altered. And for this reason. One of the aspects of this matter which has throughout troubled successive Chancellors has been the very considerable 276 abuse of the relief for young children's clothing. It has been estimated that as much as 25 per cent. of so-called young children's clothing which is exempt from purchase tax is in fact worn by adults. This is, of course, to make a complete nonsense of the relief, and unfortunately it is no part of my responsibility as Chancellor of the Exchequer to add to the many advantages already enjoyed by slim and nubile young women.
§ I therefore asked Customs and Excise to see whether they could not work out a more restrictive scheme, in order to cut the abuse to the minimum. This they have done, though they will, I suspect, have needed all their ingenuity to deal with a situation where, for instance—so the Customs experts tell me—the waist measurement of the current Miss World is that of an average young girl of 12.
§ The cost of zero-rating young children's clothing and footwear will be £35 million in 1973–74, and £55 million in a full year.