HC Deb 02 May 1974 vol 872 cc1312-3
19. Mr. Waddington

asked the chancellor of the Exchequer what steps he now proposes to take to relieve students' hostels of the obligation to pay VAT and amend the VAT (General) (No. 2) Order 1973; and if he will make a statement.

Mr. Joel Barnett

After a full reexamination of all the relevant factors, I have decided not to amend the Value Added Tax (General) (No. 2) Order 1973.

Mr. Waddington

Is the hon. Gentleman aware that his colleague, the hon. Member for Manchester, Ardwick (Mr. Kaufman), waxed lyrical about the evils of that part of the order that discriminated against halls of residence which were not attached to universities, compared with halls of residence which formed part of universities? Surely, the hon. Gentleman recognised then the logic of his colleague's case and, surely, being an honourable man, he will now do something to put in order what he then recognised to be a disorder?

Mr. Barnett

I recall what my hon. Friend the Member for Manchester, Ardwick (Mr. Kaufman) said at the time, but he will know only too well, as will the hon. Member for Nelson and Colne (Mr. Waddington), that I do not deny the anomalies in VAT—indeed, I have said a great deal about them in the past few years. There are difficult dividing lines on this issue, and, whenever there are dividing lines, once reliefs are given new dividing lines are created.

Mr. Lee

Nobody will blame my hon. Friend for this ludicrous tax, but can something be done to simplify the forms which have to be completed? All sorts of people are being driven up the wall trying to fill them in. I speak from personal experience.

Mr. Barnett

I shall consider my hon. Friend's personal request.

Mr. Blenkinsop

Will my hon. Friend consider, if not student hostels, at least the representations we are making on behalf of the Youth Hostels Association, which is the only body of its kind in Europe that has to pay VAT?

Mr. Barnett

I am always prepared to listen to representations from my hon. Friend, and if he cares to make them I shall be pleased to hear them.