§ Mr. Alfred MorrisTo ask the Prime Minister if he will institute an interdepartmental review of the case for reducing the level of value added tax on bloodstock in the United Kingdom to reduce the difference between the United Kingdom rate and the rates levied in France and Ireland.
§ The Prime Minister[holding answer 26 October 1992]: The Government recognise the regional economic importance of the bloodstock industry. My right hon. Friend the Paymaster General has worked hard with industry representatives to ensure that it is not significantly disadvantaged by the continued difference in VAT rates between member states. The introduction of the flat rate farmers' scheme and a 0.75 per cent. cut in betting duty in the 1992 Budget will help to secure the right environment in which the industry can compete successfully.
Ministers receive many well-argued cases for tax relief, many of which appear at least as deserving of a reduced rate as bloodstock. The Government believe that their long-standing policy of a VAT system based on a zero rate and a single positive rate is simple for all traders and cheap to administer.