HC Deb 27 February 1975 vol 887 cc676-7
1. Mrs. Renée Short

asked the Chancellor of the Exchequer which Common Market regulations prevent the zero-rating of the theatre for VAT.

20. Mr. Hannam

asked the Chancellor of the Exchequer if he will now zero-rate the living theatre for the purposes of VAT.

34. Mr. Goodhart

asked the Chancellor of the Exchequer what consideration has been given to relieving the performing arts of value added tax.

The Minister of State, Treasury (Mr. Robert Sheldon)

There are no EEC requirements relating to the application of VAT to the theatre. My right hon. Friend is considering representations for relief from VAT for the performing arts, including the theatre.

Mrs. Short

I am obliged to my hon. Friend for that reply. I was glad to hear the latter part of his answer. Will he tell his right hon. Friend that in Belgium the theatre is zero rated? I hope that we shall be able to follow suit.

Mr. Sheldon

I take note of the representations of my hon. Friend. I pay tribute to the delegation that she brought to see my right hon. Friend the Chancellor of the Exchequer, whose representations are at present being considered.

Mr. Hannam

Is the Minister aware that many of our regional theatres are facing the problems of deficits, despite the help given by the Arts Council? Generally speaking, the amount that they are in deficit is roughly the same as the VAT which they have to pay. If the Chancellor is able to give this relief to the living theatre it will benefit regional theatres throughout the country.

Mr. Sheldon

That is a problem, as my hon. Friend pointed out. That is why my right hon. Friend the Chancellor is considering these matters sympathetically.

Mr. Powell

Does the Minister agree that no progress has yet been made on the Government's renegotiation objective relating to VAT?

Mr. Sheldon

As the right hon. Gentleman will understand, this is a much more limited matter. Within the EEC there are wide discrepancies in the treatment of the theatre.