§ Mr. Molyneaux
To ask the Prime Minister if he will indicate the provisions(a) under which the EC could propose an increase in the VAT rate in the United Kingdom and (b) under which the United Kingdom may veto the proposal.
§ The Prime Minister
No such proposal exists. Under the provisions of article 99 of the treaty of Rome, the Commission of the European Community could, in theory, propose for example, a minimum standard rate higher than that in the United Kingdom. However any such proposal, in common with all fiscal matters under article 99 of the treaty, would be subject to unanimity and thus the United Kingdom retains an absolute right of veto.