§ Mr. Alfred Morris
To ask the Chancellor of the Exchequer what representations he has had from the Charities Tax Reform Group in regard to taxation on charities; what reply he is sending; what action he will be taking; and if he will make a statement.
§ Sir John Cope
The Charities' Tax Reform Group—CTRG—has suggested that charities could be compensated by grant in aid for their irrecoverable VAT on non-business expenditure incurred in carrying out their charitable objectives.
I cannot anticipate my right hon. Friend's Budget speech. I have replied to the CTRG along those lines. However, I am also expecting to meet the group shortly to receive further representations.