§ Mr. Parryasked the Chancellor of the Exchequer if he will assess the effect on the take-away food industry of the imposition of value added tax; and if he will make a statement.
§ Dr. Glynasked the Chancellor of the Exchequer what has been the revenue from the imposition of value added tax on take-away foods; and what assessment he has made of the impact of the tax on (a) sales and (b) profits.
§ Mr. HayhoeI refer the hon. Member and my hon. Friend to my answer on 12 November to the hon. Member for Birmingham, Erdington (Mr. Corbett) at column 89.
The limited information available suggests that during the first few months of VAT on hot take-away food, the overall level of sales by small catering businesses was slightly down on the same period in 1983. Although some businesses have fared less well than others, it is impossible to say to what extent this is due to VAT rather than to other factors. There has been substantial real growth in the takeaway food industry in recent years, and this long term trend can be expected to continue.