§ Mr. Wigleyasked the Chancellor of the Exchequer if he will state what representations he has had from the construction industry against any Government proposal to extend the repayment period of value added tax from one month to three months; and if he will consider excluding the construction industry from this provision.
§ Mr. Peter ReesRepresentations have been received from, or on behalf of, the National Federation of Building Trades Employers, the Federation of Master Builders and a number of individuals. No decision on the proposal has yet been made.
182WI have noted the hon. Member's suggestion.
§ Mr. Marksasked the Chancellor of the Exchequer if it is his intention to extend value added tax repayments from one monthly to three-monthly intervals; and what effect he estimates this would have on cash flow problems of small firms, particularly in the construction industry.
§ Mr. Peter Rees[pursuant to his reply, 3 December 1979]: On the first part of the question I refer the hon. Member to the reply given on 16 November to my hon. Friend the Member for Reigate (Mr. Gardiner). It is estimated that if monthly repayments of VAT were abolished, traders affected would experience a once-for-all worsening of cash flow of about £300 million in all. It is not possible to make a reliable estimate for small firms as a whole or specifically in the construction industry.