HC Deb 15 December 1992 vol 216 cc118-9W
Ms. Walley

To ask the Chancellor of the Exchequer what representations he has received concerning the introduction of VAT on newspapers; and if he will make a statement.

Mr. Dorrell

I have received a number of representations about this issue. The Government have no present plans or proposals to extend the scope of VAT to newspapers.

Mrs. Golding

To ask the Chancellor of the Exchequer how many businesses have been wound up as a result of Customs and Excise taking action on value added tax in the last available year; and what percentage that represents of the number of businesses that ceased trading in that period.

Mr. Dorrell

Figures for businesses that cease trading are not collected centrally. During the year ending 31 March 1992, there were 42,676 insolvencies, in 6,775–16 per cent.—of which Customs and Excise were the petitioning creditors. In virtually all of these cases, other creditors were also involved.

Mr. Dykes

To ask the Chancellor of the Exchequer what would be the annual change in the revenue to the Exchequer if a reduced rate of value added tax at 6 per cent. were imposed on(a) the bloodstock industry, (b) funeral undertakings and cremations, (c) theatre and cinema tickets and video retail sales, (d) all snack foods, including chocolate, confectionary and chocolate coated biscuits and (e) admission to all sporting events.

Mr. Dorrell

Precise costings are not available. The following estimates are based on consumers' expenditure data and make no allowance for the likely behavioural response to the change in the VAT rate:

£ million (1991–92 prices)
Bloodstock industry -5
Theatre and cinema admissions and video retail sales -120
All snack foods -930
Admissions to all sporting events -40

All snack foods include chocolate biscuits, confectionery, crisps, nut products, soft drinks and ice cream. These items are almost all standard rated at present.

Funeral undertakings and cremations are presently exempt from VAT. The revenue effect from applying a VAT rate of 6 per cent. would need to take account of input tax which would be reclaimed at the standard rate of VAT. The revenue effect is likely to be close to zero.

Ms. Walley

To ask the Chancellor of the Exchequer if he will meet the editor of theBiddulph and Congleton Chronicle to discuss concerns about the removal of VAT zero-rating on newspapers.

Mr. Dorrell

The Government have no present plans or proposals to extend the scope of VAT to newspapers. I do not think that any useful purpose would be served by a meeting at this time.