HL Deb 01 August 1984 vol 455 cc794-5

3.3 p.m.

Baroness Nicol

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will confirm that children's clothing and footwear will continue to be exempted from value added tax.

The Minister of State, Privy Council Office, and Minister for the Arts (The Earl of Gowrie)

My Lords, the Government have no intention at present of imposing VAT of young children's clothing and footwear.

Baroness Nicol

My Lords, I am very grateful to the noble Earl the Minister for that Answer. Does he realise that it conflicts with the reply given to the Independent Footwear Retailers' Association, in which his right honourable friend stated, in response to a similar question: In the long run, the indirect tax base may have to be further extended so that income tax can be further reduced"? He went on to say that nothing could be exempt from that. Can the Minister comment?

The Earl of Gowrie

My Lords, it is indeed the policy of the Government to shift the burden of taxes from direct to indirect taxation. Naturally, one cannot tell what the future will bring, but, as I said to the noble Baroness and the House, the Government have no intention at present of imposing VAT on young children's clothing.

Baroness David

My Lords, may I ask the Minister whether books—in which I hope he has a special interest as Minister for the arts and libraries—will continue to be exempt from value added tax also?

The Earl of Gowrie

My Lords, the Government also have no plans at present to impose VAT on books.

Baroness David

My Lords, may I ask the Minister how long "at present" goes on for?

The Earl of Gowrie

My Lords, the present goes on until it comes to an end.

Baroness Nicol

My Lords, when "at present" does come to an end, will the Minister make sure that children's shoes, above all else, remain exempt from VAT for as long as possible? Is the Minister aware that not only would VAT place a tremendous burden on parents who have to keep replacing shoes for young children (as I am sure he is aware) but also that the retailers' association is very worried about the threat of cheap imports and the possible damage to young children's feet caused both by passing shoes down the family and also by their being made to wear those shoes for too long? Will the Minister promise that children's shoes will be the very last to be considered?

The Earl of Gowrie

My Lords, I am an Irishman, and I could point out to the noble Baroness, to the House and, indeed, to my right honourable friend the Chancellor of the Exchequer that a government in Ireland fell recently over this issue.

Lord Swinfen

My Lords, may I ask my noble friend what he meant by "young children" in his response to the original Question, which referred only to "children"?

The Earl of Gowrie

My Lords, my original Answer referred to "young children". I assume that "young children" are pre-adolescent.