§ Mr. Doverasked the Chancellor of the Exchequer what estimates the Government originally made of the effect on the turnover of hot take-away food outlets, particularly fish and chips, of the imposition of 15 per cent. value added tax from 1 May 1984; what is his most recent estimate of the effect on turnover; and what estimates he has made of the consequential effect on the tax yield.
§ Mr. Hayhoe[pursuant to his reply, 22 June 1984, c. 291]: The estimates of the increased revenues as a result of withdrawing the zero rate of VAT from hot food and drink were published in the "Financial Statement and Budget Report 1984–85" on page 35 in footnote (aa) to table 4.2, "Direct effects of changes in taxation".
Some reduction in the volume of demand for hot takeaway food and drink during the early months of the tax was expected but long-term trends cannot yet be identified with accuracy.