§ Mr. David Atkinson
To ask the Chancellor of the Exchequer if he will make proposals to the European Commission to substantially raise the tax threshold of VAT for small businesses; and if he will make a statement.
§ Sir John Cope
The Government support the Commission's proposal for a VAT directive for small and medium-sized enterprises. However, the Government would wish to see a significant increase in the optional higher threshold which, as currently proposed, is below the United Kingdom threshold, which is the highest in the EC.