§ Mr. CartwrightTo ask the Chancellor of the Exchequer what steps he is taking to ensure that zero rating of children's clothes and footwear remains as a permanent feature of VAT harmonisation in the European Community.
§ Mrs. Gillian ShephardThe Goverment are pledged to retain zero-rating for children's clothing and footwear. In discussions with the European Commission and other member states the Government have made it clear that they could not accept any proposal which would restrict our ability to retain current zero-rated items. The United Kingdom's position is ultimately safeguarded, in that changes to EC tax law require the unanimous agreement of member states.