§ Mr. William PowellTo ask the Chancellor of the Exchequer whether he has yet received clarification from the European Commission of the effect on village halls of the European Court of Justice's judgment on value added tax zero rates; and if he will make a statement.
§ Mr. LilleyI have now received a letter from Mrs. Christiane Scrivener, the EC Commissioner, which indicates that the Commission believes the European Court's judgment, while prohibiting the zero-rating of supplies of fuel and power to village halls, does not rule out zero-rating for the construction of village halls. I therefore propose to bring forward amendments to the Finance Bill at Report stage to reinstate the zero rate for the construction of new village halls and similar charitable buildings. These will be tabled as soon as possible.