§ 6. Miss Joan Lestorasked the Chancellor of the Exchequer whether he will consider the zero rating of all essential items of baby care for the purposes of value added tax; and if he will make a statement.
§ Mr. HayhoeBabies' clothing and footwear are already relieved from value added tax, as is most baby food.
§ Miss LestorIs the hon. Gentleman aware that, despite what he said, it can cost people up to £60 in tax to buy essential items of baby care? Is he further aware that the maternity grant, which was fixed in 1969 but which is now worth much less, has been eroded by the application of VAT on other items of baby care? Will he consider increasing the maternity grant and zero rating all items of baby care that are not at present zero rated?
§ Mr. HayhoeQuestions about the maternity grant should be addressed to my right hon. Friend the Secretary of State for Social Services. The hon. Lady should recognise that it is not just a tax on luxuries but that it covers some essential items. If we removed all the essential items from VAT, that tax base would be greatly reduced, which would lead to greater problems.