§ Mrs. BrookeTo ask the Chancellor of the Exchequer what discussions he has had with the European Commission on a new reduced rate category of VAT for protective and safety equipment; and what the outcome was. [138774]
§ John HealeyThe Directive covering reduced rates of VAT is currently under discussion by European Ministers, following a proposal from the Commission earlier this year. This proposal challenges a number of the UK's zero rates including those for children's clothing and several reliefs targeted at charities and disabled people. We have made clear in the negotiations that we will not agree to the removal of any of our zero or reduced rate VAT derogations.
The Commission's approach to this review has significantly narrowed the scope to consider the introduction of new reduced rates. However, as well as defending our zero rates, the Government continue to press for our long standing commitments for reduced 530W rates for repairs to listed places of worship and the purchase of energy-saving materials for do-it-yourself installation, and also for energy-efficient products.