§ Mr. SnapeTo ask the Secretary of State for Transport what assessment he has made of the effect of the imposition of value added tax on passenger transport; and what would be the increase in(a) fares or (b) public sector grant in a full year to recover the net cost of value added tax charged at a rate of (i) 15 per cent. and (ii) 17.5 per cent.
§ Mr. FreemanI have made no detailed assessment of the effects of the imposition of value added tax on passenger transport. Agreement reached by Finance Ministers enables us to retain our existing zero rates.