HC Deb 17 June 1982 vol 25 c347W
39. Mr. Grimond

asked the Chancellor of the Exchequer if he will take steps to adjust the value added tax on holiday accommodation and hotel services and sales to bring it into line with the lower rates charged in most other EEC countries.

Mr. Bruce-Gardyne

No. Those European Community countries which apply a reduced rate of VAT to hotel, holiday or short-term accommodation do so as part of a multi-rate VAT system which incorporates a reduced positive rate applying to a range of goods and services. The introduction of a reduced positive rate in the United Kingdom would be a retrograde step, sacrificing the simplification achieved with the change to a single positive VAT rate in 1979.