§ Mr. Pavitt
asked the Chancellor of the Exchequer if he will introduce legislation to ensure that medical research sponsored by charitable trusts is not liable to value added tax.
§ Mr. Higgins
Charities have normally borne indirect taxation on the goods they have purchased. My right hon. Friend reviewed the problems of value added tax and charities before the Budget in the light of all the representations which had been received, including those on behalf of charitable trusts sponsoring medical research. He has decided to aid charities by other fiscal concessions.
Taking full account of the changeover to VAT, the cost to the Exchequer of the concessions to charities as a whole made in the last two Budgets is estimated to be of the order of £20 million in 1973–74.