HC Deb 13 May 1976 vol 911 cc660-2
11. Mr. Banks

asked the Chancellor of the Exchequer what are the rates of VAT applicable now to burglar alarm equipment and installations.

Mr. Robert Sheldon

They are 12½ per cent. in the case of burglar alarms which are of a kind suitable for domestic use: 8 per cent. in other cases.

However, the professional installation of burglar alarm systems in the course of building construction or alteration is normally zero-rated.

Mr. Banks

Will the hon. Gentleman admit that this is a classic example of the stupidity of multi-rate VAT, which creates confusion, frustration and paperwork, and hinders the work of the police in their campaign to prevent crime?

Mr. Sheldon

I do not see this as a particular problem of multi-rate VAT. After all, before multi-rate VAT was introduced, such domestic installations were chargeable at the standard rate. I understand that Conservative Members are prepared to accept a standard rate. Some have said that it should be 122 per cent. and others that it should be 15 per cent., which would have been an even greater increase on the rate of VAT for burglar alarms. The Opposition should sort out their own inconsistencies.

Mr. Jay

Does my hon. Friend regret as heartily as I do the introduction of VAT by the Conservative Government?

Mr. Sheldon

I remind my right hon. Friend that this was a tax that I inherited, with all its problems and complexities. My duty is to implement the tax. My work would have been very much easier if I had not inherited such a difficult tax. If it had not been introduced I should have had a much easier load, which I should willingly have been able to bear.

Mr. Anthony Grant

More seriously, regardless of what the position was in the past, in view of the considerable increase in crime, which these installations are intended to combat, will not the hon. Gentleman reconsider whether burglar alarms should be considered more luxurious than ice lollies?

Mr. Sheldon

I must refute the impression that the higher rate of value added tax is for luxuries. Burglar alarms were always rated at the standard rate. When this batch of articles was looked at again, it naturally fell into the higher rate category. I am willing to receive representations from the hon. Gentleman on this matter, but I have looked at it before and I find some of the problems rather more difficult than perhaps can be explained now. If the hon. Gentleman will agree to have further consultation by letter or by visit, I shall be happy to oblige him.