§ Mr. StevensonTo ask the Chancellor of the Exchequer what assessment has been made into the effect of value added tax changes that require payment on account rather than in arrears in Stoke-on-Trent, South; and if he will make a statement.
§ Sir John CopeIt is not possible to analysise by constituency area the effects of the requirement that the largest VAT payers should make payments monthly in arrears rather than quarterly in arrears. Overall, the change brings United Kingdom practice into line with that in most other EC member states, and offsets the cash flow loss to the Exchequer which would otherwise arise as a result of the reintroduction in this financial year of postponed accounting for VAT on acquisitions from other EC countries.