§ Motion made, and Question.
§ That—
§ (1) As from 18th June 1979—
- (a) section 17 of the Finance (No. 2) Act 1975 and Schedule 7 to that Act (higher rate of value added tax) shall cease to have effect; and
- (b) in section 9(1) of the Finance Act 1972 (standard rate of value added tax) for the
1045 words "eight per cent." there shall be substituted the words "fifteen per cent."
§ (2) Sub-paragraph (1)(a) above does not affect Note (7) of Group 9 or item 1 of Group 17 of Schedule 4 to the said Act of 1972 (which contain exceptions from zero-rating expressed by reference to items in Schedule 7 to the said Act of 1975).
§ (3) Sub-paragraph (1)(b) above does not affect the rate of tax on any supply of telephone services provided by the Post Office or the District Council of Kingston upon Hull by means of their public switched telephone exchange systems, being services in respect of which the Post Office or the Council issue a tax invoice which includes a rental charge for a rental quarter beginning before 1st November 1979.
§ In this sub-paragraph "tax invoice" has the same meaning as in section 7 of the said Act of 1972.
§ (4) Where a supply in fact made wholly or partly before the said 18th June, or a supply which, apart from the other provisions of the said section 7, would be treated as so made by subsection (2) or (3) of that section, is treated
1046§ under those other provisions as made on or after that date, the person making the supply may account for and pay tax on the supply or, as the case may be, on the relevant part of it as if the rate of tax had not been increased by paragraph (1)(b) above.
§ (5) Where a person avails himself of sub-paragraph (4) above in relation to a supply in respect of which he is required by regulations to issue a tax invoice, any provision of the regulations requiring the amount of tax chargeable or the rate of tax to be stated in the invoice shall be construed as referring to the amount and rate that apply by virtue of that sub-paragraph.
§ And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Sir Geoffrey Howe.]
§ put forthwith pursuant to Standing Order No. 94 (Ways and Means Motions):—
§ The House divided: Ayes 304, Noes, 256.
1049| Division No. 10] | AYES | [10.00 p.m. |
| Adley, Robert | Channon, Paul | Glyn, Dr. Alan |
| Aitken, Jonathan | Chapman, Sydney | Goodhart Philip |
| Alexander, Richard | Churchill, W. S. | Goodhew, Victor |
| Alison, Michael | Clark, Hon. Alan (Plymouth, Sutton) | Goodlad, Alastair |
| Amery, Rt. Hon. Julian | Clark, William (Croydon South) | Gorst, John |
| Ancram, Michael | Clarke, Kenneth (Rushcliffe) | Gow, Ian |
| Arnold, Tom | Clegg, Walter | Gower, Sir Raymond |
| Aspinwall, Jack | Cockeram, Eric | Gray, Hamish |
| Atkins, Robert (Preston North) | Colvin, Michael | Greenway Harry |
| Baker, Kenneth (St. Marylebone) | Cope, John | Griffiths, Eldon (Bury St Edmunds) |
| Baker, Nicholas (North Dorset) | Cormack, Patrick | Griffiths Peter (Portsmouth N.) |
| Beaumont-Dark, Anthony | Costain, A. P. | Grist, Ian |
| Bell, Ronald | Cranborne, Viscount | Grylls, Michael |
| Bendall, Vivian | Crouch, David | Gummer, John Selwyn |
| Benyon, Thomas (Abingdon) | Dean, Paul (North Somerset) | Hamilton, Hon. Archie (Eps'm & Ew'll) |
| Benyon, W. (Buckingham) | Dickens, Geoffrey | Hamilton Michael (Salisbury) |
| Best, Keith | Dodsworth, Geoffrey | Hampson, Dr. Keith |
| Bevan, David Gilroy | Dorrell, Stephen | Hannam, John |
| Biffen, Rt. Hon. John | Dover, Denshore | Haselhurst, Alan |
| Biggs-Davison, John | du Cann, Rt. Hon. Edward | Hastings, Stephen |
| Blackburn, John | Dunn, Robert (Dartford) | Havers, Rt. Hon. Sir Michael |
| Blaker, Peter | Durant, Tony | Hawksley, Warren |
| Body, Richard | Dykes, Hugh | Hayhoe, Barney |
| Bonsor, Sir Nicholas | Eden, Rt. Hon. Sir John | Heddle, John |
| Boscawen, Hon. Robert | Edwards, Rt. Hon. N. (Pembroke) | Henderson, Barry |
| Bottomley, Peter (Woolwich West) | Eggar, Timothy | Heseltine, Rt. Hon. Michael |
| Bowden, Andrew | Elliott, Sir William | Hicks, Robert |
| Boyson, Dr. Rhodes | Emery, Peter | Higgins, Terence L. |
| Braine, Sir Bernard | Eyre, Reginald | Hill James |
| Bright, Graham | Fairbairn, Nicholas | Hogg, Hon. Douglas (Grantham) |
| Brinton, Timothy | Fairgrieve, Russell | Holland, Philip (Carlton) |
| Brittan, Leon | Faith, Mrs. Sheila | Hooson, Tom |
| Brocklebank-Fowler, Christopher | Farr, John | Hordern, Peter |
| Brooke, Hon. Peter | Fell, Anthony | Howe, Rt. Hon. Sir Geoffrey |
| Brotherton, Michael | Fenner, Mrs. Peggy | Howell, Rt. Hon. David (Guildford) |
| Brown, Michael (Brigg & Sc'thorpe) | Finsberg, Geoffrey | Hunt, David (Wirral) |
| Browne, John (Winchester) | Fisher, Sir Nigel | Hunt, John (Ravensbourne) |
| Bruce-Gardyne, John | Fletcher, Alexander (Edinburgh N.) | Hurd, Hon. Douglas |
| Bryan, Sir Paul | Fookes, Miss Janet | Irving, Charles (Cheltenham) |
| Buck, Antony | Forman, Nigel | Jenkin, Rt. Hon. Patrick |
| Budgen, Nick | Fowler, Rt. Hon. Norman | Johnson Smith, Geoffrey |
| Bulmer, Esmond | Fox, Marcus | Jopling, Rt. Hon. Michael |
| Burden, F. A. | Fraser, Rt. Hon. H. (Stafford & St) | Joseph, Rt. Hon. Sir Keith |
| Butcher, John | Fraser, Peter (South Angus) | Kaberry, Sir Donald |
| Butler, Hon. Adam | Fry, Peter | Kimball, Marcus |
| Cadbury, Jocelyn | Galbraith, Hon. T. G. D. | Kitson, Sir Timothy |
| Carlisle, John (Luton West) | Gardiner, George (Reigate) | Knight, Mrs. Jill |
| Carlisle, Kenneth (Lincoln) | Gardner, Edward (South Fylde) | Knox, David |
| Carlisle, Rt. Hon. Mark (Runcorn) | Garel-Jones, Tristan | Lamont, Norman |
| Chalker, Mrs. Lynda | Gilmour, Rt. Hon. Sir Ian | Lang, Ian |
| Langford-Holt, Sir John | Needham, Richard | Spence, John |
| Latham, Michael | Nelson, Anthony | Spicer, Michael (S. Worcestershire) |
| Lawrence, Ivan | Neubert, Michael | Sproat, Ian |
| Lawson, Nigel | Newton, Tony | Squire, Robin |
| Lee, John | Nott, Rt. Hon. John | Stanbrook, Ivor |
| Lennox-Boyd, Hon. Mark | Onslow, Cranley | Stanley, John |
| Lester, Jim (Beeston) | Oppenheim, Rt. Hon. Mrs. Sally | Steen, Anthony |
| Lewis, Kenneth (Rutland) | Page, Rt. Hon. R. Graham (Crosby) | Stevens, Martin |
| Lloyd, Ian (Havant & Waterloo) | Parkinson, Cecil | Stewart, Ian (Hitchin) |
| Lloyd, Peter (Fareham) | Parris, Matthew | Stewart, John (East Renfrewshire) |
| Loveridge, John | Patten, Christopher (Bath) | Stokes, John |
| Lyell, Nicholas | Patten, John (Oxford) | Stradling Thomas, J. |
| McAdden, Sir Stephen | Pattie, Geoffrey | Tapsell, Peter |
| McCrindle, Robert | Pawsey, James | Taylor, Robert (Croydon N. W.) |
| Macfarlane, Neil | Percival, Sir Ian | Tebbit, Norman |
| MacGregor, John | Peyton, Rt. Hon. John | Temple-Morris, Peter |
| Mackay, John (Argyll) | Pink, R. Bonner | Thatcher, Rt. Hon. Mrs. Margaret |
| Macmillan, Rt. Hon. M. (Farnham) | Pollock, Alexander | Thomas, Rt. Hon. Peter (Hendon S.) |
| McNair-Wilson, Michael (Newbury) | Porter, George | Thompson, Donald |
| McNair-Wilson, Patrick (New Forest) | Prentice, Rt. Hon. Reg | Thorne, Neil (Ilford South) |
| McQuarrie, Albert | Price, David (Eastleigh) | Thornton, George |
| Madel, David | Prior, Rt. Hon. James | Townend, John (Bridlington) |
| Major, John | Proctor, K. Harvey | Townsend, Cyril D. (Bexleyheath) |
| Marland, Paul | Pym, Rt. Hon. Francis | Trippier, David |
| Marlow, Anthony | Raison, Timothy | Trotter, Neville |
| Marshall, Michael (Arundel) | Rathbone, Tim | van Straubenzee, W. R. |
| Marten, Neil (Banbury) | Rees, Peter (Dover and Deal) | Vaughan, Dr. Gerard |
| Mates, Michael | Rees-Davies, W. R. | Waddington, David |
| Mather, Carol | Renton, Tim | Wakeham, John |
| Maude, Rt. Hon. Angus | Rhodes James, Robert | Waldegrave, Hon. William |
| Mawby, Ray | Ridley, Hon. Nicholas | Wall, Patrick |
| Mawhinney, Dr. Brian | Ridsdale, Julian | Waller, Gary |
| Maxwell-Hyslop, Robin | Rifkind, Malcolm | Walters, Dennis |
| Mayhew, Patrick | Rippon, Rt. Hon. Geoffrey | Ward, John |
| Mellor, David | Roberts, Michael (Cardiff N. W.) | Watson, John |
| Meyer, Sir Anthony | Roberts, Wyn (Conway) | Wells, John (Maidstone) |
| Miller, Hal (Bromsgrove & Redditch) | Rossi, Hugh | Wells, P. Bowen (Hert'rd & Stev'nage) |
| Mills, Iain (Meriden) | Rost, Peter | Wheeler, John |
| Mills, Peter (West Devon) | Royle, Sir Anthony | Whitelaw, Rt. Hon. William |
| Miscampbell, Norman | Sainsbury, Hon. Timothy | Whitney, Raymond |
| Mitchell, David (Basingstoke) | St. John Stevas, Rt. Hon. Norman | Wickenden, Keith |
| Moate, Roger | Scott, Nicholas | Wiggin, Jerry |
| Monro, Hector | Shaw, Giles (Pudsey) | Wilkinson, John |
| Montgomery, Fergus | Shelton, William (Streatham) | Williams, Delwyn (Montgomery) |
| Moore, John | Shepherd, Colin (Hereford) | Winterton, Nicholas |
| Morgan, Geraint | Shepherd, Richard (Aldridge-Br'hills) | Wolfson, Mark |
| Morris, Michael (Northampton, Sth) | Shersby, Michael | Young, Sir George (Acton) |
| Morrison, Hon. Charles (Devizes) | Silvester, Fred | Younger, Rt. Hon. George |
| Morrison, Hon. Peter (City of Chester) | Sims, Roger | |
| Mudd, David | Skeet, T. H. H. | TELLERS FOR THE AYES: |
| Murphy, Christopher | Smith, Dudley (War, and Leam'ton) | Mr. Spencer Le Marchant and |
| Myles, David | Speed, Keith | Mr. Anthony Berry. |
| Neale, Gerrard | Speller, Tony | |
| NOES | ||
| Abse, Leo | Canavan, Dennis | Douglas-Mann, Bruce |
| Adams, Allen | Cant, R. B. | Dubs, Alfred |
| Allaun, Frank | Carmichael, Neil | Duffy, A. E. P. |
| Alton, David | Carter-Jones, Lewis | Dunn, James A. (Liverpool, Kirkdale) |
| Anderson, Donald | Cartwright, John | Dunnett, Jack |
| Archer, Rt. Hon. Peter | Clark, Dr. David (South Shields) | Eadie, Alex |
| Armstrong, Ernest | Cocks, Rt. Hon. Michael (Bristol S.) | Eastham, Ken |
| Ashley, Jack | Cohen, Stanley | Ellis, Raymond (NE Derbyshire) |
| Ashton, Joe | Coleman, Donald | English, Michael |
| Atkinson, Norman (H'gey, Tott'ham) | Concannon, Rt. Hon. J. D. | Ennals, Rt. Hon. David |
| Barnett, Guy (Greenwich) | Conlan, Bernard | Evans, Ioan (Aberdare) |
| Barnett, Rt. Hon. Joel (Heywood) | Cowans, Harry | Ewing, Harry |
| Beith, A. J. | Crowther, J. S. | Field, Frank |
| Bennett, Andrew (Stockport N.) | Cryer, Bob | Flannery, Martin |
| Bidwell, Sydney | Cunliffe, Lawrence | Fletcher, Ted (Darlington) |
| Booth, Rt. Hon. Albert | Cunningham, Dr. John (Whitehaven) | Foot, Rt. Hon. Michael |
| Boothroyd, Miss Betty | Davidson, Arthur | Ford, Ben |
| Bottomley, Rt. Hon. Arthur (M'brough) | Davies, Rt. Hon. Denzil (Llanelli) | Forrester, John |
| Bradford, Rev. R. | Davies, E. Hudson (Caerphilly) | Foster, Derek |
| Bradley, Tom | Davies, Ifor (Gower) | Foulkes, George |
| Bray, Dr. Jeremy | Davis, Clinton (Hackney Central) | Fraser, John (Lambeth, Norwood) |
| Brown, Hugh D. (Provan) | Davis, Terry (Br'm'ham, Stechford) | Freeson, Rt. Hon. Reginald |
| Brown, Robert C. (Newcastle W) | Deakins, Eric | Freud, Clement |
| Brown, Ron (Edinburgh, Leith) | Dempsey, James | Garrett, John (Norwich S.) |
| Buchan, Norman | Dewar, Donald | Garrett, W. E. (Wallsend) |
| Callaghan, Rt. Hon. J. (Cardiff SE) | Dixon, Donald | George, Bruce |
| Callaghan, Jim (Middleton & P) | Dobson, Frank | Gilbert, Rt. Hon. Dr. John |
| Campbell, Ian | Dormand, J. D. | Golding, John |
| Campbell-Savours, Dale | Douglas, Dick | Gourlay, Harry |
| Graham, Ted | McWilliam, John | Sheldon, Rt. Hon. Robert (A'ton-u-L) |
| Grant, George (Morpeth) | Magee, Bryan | Shore, Rt. Hon. Peter (Step and Pop) |
| Grant, John (Islington C) | Marks, Kenneth | Short, Mrs. Renée |
| Grimond, Rt. Hon. J. | Marshall, David (Gl'sgow, Shettles'n) | Silkin, Rt. Hon. John (Deptford) |
| Hamilton, W. W. (Central Fife) | Marshall, Dr. Edmund (Goole) | Silkin, Rt. Hon. S. C. (Dulwich) |
| Harrison, Rt. Hon. Walter | Marshall, Jim (Leicester South) | Silverman, Julius |
| Hart, Rt. Hon. Judith | Martin, Michael (Gl'gow, Springo'm) | Skinner, Dennis |
| Hattersley, Rt. Hon. Roy | Mason, Rt. Hon. Roy | Smith, Cyril (Rochdale) |
| Haynes, David | Maxton, John | Smith, Rt. Hon. J. (North Lanarkshire) |
| Healey, Rt. Hon. Denis | Maynard, Miss Joan | Snape, Peter |
| Heffer, Eric S. | Meacher, Michael | Soley, Clive |
| Hogg, Norman (E Dunbartonshire) | Mellish, Rt. Hon. Robert | Spearing, Nigel |
| Holland, Stuart (L'beth, Vauxhall) | Mikardo, Ian | Spriggs, Leslie |
| Home Robertson, John | Millan, Rt. Hon. Bruce | Stallard, A. W. |
| Homewood, William | Mitchell, Austin (Grimsby) | Steel, Rt. Hon. David |
| Hooley, Frank | Molyneaux, James | Stewart, Rt. Hon. Donald (W Isles) |
| Horam, John | Morris, Rt. Hon. Alfred (Wythenshawe) | Stoddart, David |
| Howell, Rt. Hon. Denis (B'ham, Sm H) | Morris, Rt. Hon. Charles (Openshaw) | Stott, Roger |
| Howells, Geraint | Morris, Rt. Hon. John (Aberavon) | Strang, Gavin |
| Huckfield, Les | Morton, George | Straw, Jack |
| Hughes, Robert (Aberdeen North) | Moyle, Rt. Hon. Roland | Summerskill, Hon. Dr. Shirley |
| Hughes, Roy (Newport) | Mulley, Rt. Hon. Frederick | Taylor, Mrs. Ann (Bolton West) |
| Janner, Hon. Greville | Newens, Stanley | Thomas, Jeffrey (Abertillery) |
| Jay, Rt. Hon. Douglas | Oakes, Gordon | Thomas, Mike (Newcastle East) |
| John, Brynmor | Ogden, Eric | Thomas, Dr. Roger (Carmarthen) |
| Johnson, James (Hull West) | O'Halloran, Michael | Thorne, Stan (Preston South) |
| Johnson, Walter (Derby South) | O'Neill, Martin | Tilley, John |
| Jones, Alec (Rhondda) | Orme, Rt. Hon. Stanley | Tinn, James |
| Jones, Barry (East Flint) | Owen, Rt. Hon. Dr. David | Torney, Tom |
| Jones, Dan (Burnley) | Paisley, Rev Ian | Varley, Rt. Hon. Eric G. |
| Kaufman, Rt. Hon. Gerald | Palmer, Arthur | Wainwright, Edwin (Dearne Valley) |
| Kerr, Russell | Park, George | Wainwright, Richard (Colne Valley) |
| Kilfedder, James A. | Parker, John | Walker, Harold (Doncaster) |
| Kilroy-Silk, Robert | Parry, Robert | Watkins, David |
| Kinnock, Neil | Pendry, Tom | Weetch, Ken |
| Lambie, David | Penhaligon, David | Wellbeloved, James |
| Lamborn, Harry | Powell, Rt. Hon. J. Enoch (S Down) | Welsh Michael |
| Lamond, James | Powell, Raymond (Ogmore) | White, Frank R. (Bury & Radcliffe) |
| Leadbitter, Ted | Race, Reg | White, James (Glasgow, Pollok) |
| Leighton, Ronald | Radice, Giles | Whitlock, William |
| Lestor, Miss Joan (Eton & Slough) | Rees, Rt. Hon. Merlyn (Leeds South) | Wigley, Dafydd |
| Lewis, Ron (Carlisle) | Richardson, Miss Jo | Willey, Rt. Hon. Frederick |
| Lofthouse, Geoffrey | Roberts, Albert (Normanton) | Williams, Rt. Hon. Alan (Swansea W) |
| Lyon, Alexander (York) | Roberts, Allan (Bootle) | Williams, Sir Thomas (Warrington) |
| Lyons, Edward (Bradford West) | Roberts, Ernest (Hackney North) | Wilson, Gordon (Dundee East) |
| Mabon, Rt. Hon. Dr. J. Dickson | Roberts, Gwilym (Cannock) | Wilson, Rt. Hon. Sir Harold (Huyton) |
| McCartney, Hugh | Robertson, George | Wilson, William (Coventry SE) |
| McCusker, H. | Robinson, Geoffrey (Coventry N. W.) | Winnick, David |
| McDonald, Dr. Oonagh | Robinson, Peter (Belfast East) | Woodall, Alec |
| McElhone, Frank | Rodgers, Rt. Hon. William | Woolmer, Kenneth |
| McKay, Allen (Penistone) | Rooker, J. W. | Wrigglesworth, Ian |
| McKelvey, William | Ross, Ernest (Dundee West) | Wright, Miss Sheila |
| MacKenzie, Rt. Hon. Gregor | Ross, Wm. (Londonderry) | Young, David (Bolton East) |
| Maclennan, Robert | Rowlands, Ted | |
| McMahon, Andrew | Ryman, John | TELLERS FOR THE NOES. |
| McMillan, Tom (Glasgow, Central) | Sandelson, Neville | Mr. James Hamilton and |
| McNally, Thomas | Sever, John | Mr. John Evans |
| McQuade, John | Sheerman, Barry |
§ Question accordingly agreed to.