§ Mr. Nicholas BennettTo ask the Chancellor of the Exchequer if he will make a statement on proposals by the European Commission to end value added tax zero rating on voluntary activities conducted in village halls.
§ Mr. Lilley[holding answer 1 December 1988]: There is no value added tax zero rating for voluntary activities in village halls, as such. What I think my hon. Friend has in mind is the judgment of the European Court of Justice published on 21 June which found that certain of the United Kingdom's zero rates were not permissible under EC VAT law; this may affect goods and services bought by village halls. We have been consulting widely with interested parties, including representatives of village halls, about how best this judgment can be implemented. All the representations that we have received will be taken fully into consideration in reaching decisions. An announcement will be made in due course.