§ Mr. Waltersasked the Chancellor of the Exchequer how many representations he has received advocating the removal of payment of value added tax on the cost of extension and renovative work on premises used by charitable housing organisations; and what would be the cost of such a concession.
§ Mr. HayhoeI have received a number of representations from such bodies. Some have asked for relief from the extra VAT imposed in the Budget, while others, recognising the difficult borderline between alteration and repair work, have asked for relief from VAT on all expenditure on their premises. I did announce a relief for certain alterations to buildings for the handicapped on 29 March. Charitable housing associations providing for the handicapped will derive some benefit from that, but I am afraid that any wider relief could not realistically be confined to charitable housing associations and would therefore seriously erode the extra revenue needed from VAT to finance the other reliefs provided for in the Budget.