§ Mr. Simon Coombs
To ask the Chancellor of the Exchequer what is his estimate of the effect on the level of eating out in hotels, restaurants and pubs, of the difference of 17.5 per cent. between the applicable rate of VAT on food consumed in these locations and at home.
§ Mr. Heathcoat-Amory
If the standard rate of VAT were removed from eating out in hotels, restaurants and pubs, demand for this service would increase by an estimated 15 per cent.