§ Lord Stoddart of Swindonasked Her Majesty's Government:
Whether they will make an early statement clarifying their position in relation to the action of the Commission in seeking through the European Court to impose VAT on new building construction and other items at present taxed at a zero rate.
§ Lord Young of GraffhamThe Commission has applied to the European Court of Justice for a declaration against the UK in relation to the zero-rating of,inter alia, new building construction. The Government completely reject the Commission's case and will defend the issue before the European Court. Both parties have so far lodged written submissions, the most recent being submitted by the Government on 2nd October.