§ Mr. SpellarTo ask the Chancellor of the Exchequer if he will make a statement on the Government's position regarding the possible imposition of value added tax on charities after 1997.
§ Sir John CopeAgreement has been reached that the United Kingdom's zero rates, including those specifically designed to benefit charities and charity shops, can be maintained until at least 1997 without prejudice to their future thereafter. Any new agreement will require a unanimous decision by the Council of Ministers. There is, therefore, no question of the United Kingdom being forced to implement unwelcome proposals from 1 January 1997 and we have no plans to alter these provisions.