HC Deb 13 December 1984 vol 69 cc1194-5
4. Mr. Winnick

asked the Chancellor of the Exchequer what recent representations he has received about the imposition of value added tax on books and periodicals; and if he will make a statement.

The Minister of State, Treasury (Mr. Barney Hayhoe)

Over 500 representations from individuals and organisations have been received by Treasury Ministers during the last two months opposing VAT on books, newspapers and periodicals. Although the Government favour a shift in the burden of taxation from taxes on earnings to taxes on spending, we have no set views at present on how this might best be done. However, the representations on this subject are being carefully considered.

Mr. Winnick

Are the Government aware that extensive damage will be done to educatiom, libraries and the book trade generally if VAT is imposed, and that that damage will extend to newspapers and periodicals? Will the Chancellor of the Exchequer bear in mind that there is no more support for the imposition of VAT on those items than there would be if it were to be imposed on food?

Mr. Hayhoe

A great deal of exaggerated speculation and comment is taking place. As I have said, representations have been received, and they are being considered carefully.

Mr. Cormack

Why does my hon. Friend not end damaging speculation and prevent a major revolt—one that would make last night's Tory revolt look like a storm in a teacup—by saying that such a monstrous proposal will not be considered.

Mr. Hayhoe

My hon. Friend, who is a helpful supporter of the Government, must know that it is a well-established and accepted principle that we should not anticipate my right hon. Friend's Budget statement.

Mr. Willie W. Hamilton

How many of the representations received are in favour of the proposals? Can the Minister tell us whether such a tax was ever contemplated in time of war, let alone in peace? Does he understand that there is almost unanimous hostility to such a proposal from both sides of the House and throughout the country?

Mr. Hayhoe

I have seen the early-day motions on this subject which have been signed by hon. Members from both sides of the House. As I said, 500 representations have been received, and all are opposed to the proposal.

Mr. Adley

Will my hon. Friend state simply what factors, other than financial, tend to influence a Chancellor of the Exchequer—indeed, this Chancellor of the Exchequer—in reaching difficult decisions, such as that referred to on the Order Paper?

Mr. Hayhoe

I am sure that my right hon. Friend will take account of financial, social, economic and political considerations in forming his judgment.

Mr. Hattersley

The Minister said that he cannot anticipate the Budget. However, the Prime Minister has already done so by promising that there would be no VAT on new buildings or food. Why cannot the Budget be anticipated in this respect? Otherwise, it confirms our suspicion that it is the Treasury's intention to impose VAT on books and periodicals.

Mr. Hayhoe

The comments by my right hon. Friend the Prime Minister were made in June and July, and they have been reiterated many times—[Hon. Members: "Yesterday."] The ignorance of Opposition Members is extraordinary. My right hon. Friend yesterday reiterated, in precisely the same words, what she wrote in a letter to the House Builders Federation on 5 July, and which Treasury Ministers have confirmed on many occasions.