§ Mr. BurnsTo ask the Chancellor of the Exchequer, pursuant to the oral statement by the Paymaster General of 19 May,Official Report, column 1002, what conclusions he has reached regarding the VAT liability for the teaching of English as a foreign language; and if he will make a statement.
§ Mr. Kenneth ClarkeIn the light of the debate and the representations received I have decided that the order as drafted creates an unacceptable distortion in this sector of education and that VAT exemption should be available for all tuition in English as a foreign language. This expanded relief will be available from 1 August, the date the order comes into force, and will be administered by customs as a concession until such time as an amending order can be brought before the House.