HC Deb 29 March 2001 vol 365 c1103
13. Mr. Bob Russell (Colchester)

When the lower rate of value added tax on residential conversion works will be introduced. [154608]

The Paymaster General (Dawn Primarolo)

From the date of Royal Assent to the Finance Bill.

Mr. Russell

Does the Paymaster General agree that the higher rate of VAT on existing buildings is a disincentive for urban renewal and that the nil VAT on new building encourages greenfield development? That being the case, why has it taken the Government four years to get around to sorting out this mess?

Dawn Primarolo

I do not agree with the hon. Gentleman. The package that was introduced in this year's Budget by my right hon. Friend the Chancellor on VAT on contaminated land and on development in disadvantaged areas builds on Lord Rogers' report. It is specifically targeted at the regeneration of contaminated sites in inner-city areas and has been widely welcomed as the right way forward for developing these policies. Indeed, the empty homes initiative welcomed those proposals as the Government recognise how to deal with these problems.

Mrs. Ann Cryer (Keighley)

Will my hon. Friend comment on the fact that a charity in Ilkley in my constituency may well have to pay a levy of £10,000 over and above the cost of building a bandstand because Customs and Excise does not regard a bandstand as a building? If a bandstand is not a building, what is it?

Dawn Primarolo

I will not speculate on whether or not a bandstand is a building. However, I have noted my hon. Friend's comments, and I will certainly look closely at her point about the problems that her constituents seem to be experiencing with Customs and Excise.