Mr. Jacksonasked the Chancellor of the Exchequer what is his present estimate of the additional value added tax to be raised in a full year by the inclusion of take-away foods; whether he has formed any estimate of the proportion of this which will be derived from multiple chains and the proportion from small outlets; and what underlying assumptions he has used generally in forming this estimate.
§ Mr. HayhoeThe estimated net additional revenue from withdrawing the zero rate of VAT from hot takeaway food and drink is £200 million in a full year, as given in footnote(a) to table 4.2 of the Financial Statement and Budget Report 1984–85. The available information does not permit any reliable division of the estimate by type of outlet. As far as practicable the key assumptions and calculations follow those described in an article in Economic Trends, March 1980. There is a copy in the Library of the House.