HC Deb 02 March 1993 vol 220 c84W
Mr. Hoyle

To ask the Chancellor of the Exchequer what assessment has been made on the effect on the expenditure of people on low incomes of extending VAT to cover all foods.

Sir John Cope

My right hon. Friend is aware of the effect that the extension of VAT to food would have on the expenditure of people on low incomes. However, the hon. Member will appreciate that it would be inappropriate for me to comment further in the period leading up the Budget.

Mr. Llwyd

To ask the Chancellor of the Exchequer what effect value added tax harmonisation will have on public transport fares; and if he will make a statement.

Sir John Cope

Under the VAT rates agreement reached by EC Finance Ministers, to which my hon. Friend the Financial Secretary referred in his reply to the hon. Member on 15 December 1992 at column138, the United Kingdom retains the right to apply a zero rate to passenger transport. Any proposed change to that right would require the unanimous agreement of all member states.