§ Sir John Langford-Holtasked the Chancellor of the Exchequer whether, in his long-term taxation policy, he will move towards a higher rate of duty on tobacco and alcohol in order to allow for a value added tax zero rating of goods and services which contribute to the saving of life.
§ Mr. Peter ReesI have noted my hon. Friend's suggestion. However, any further narrowing of the VAT base could be difficult to justify and, apart from changes at the margin, extension of VAT zero-rating would be contrary to our European Community obligations.