§ Lord Tebbitasked Her Majesty's Government:
Further to their reply of 30th October 1996, whether it remains within the power of Parliament to rescind the agreement not to introduce any new VAT zero rates made by the Government with its European partners.
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)Such a change to the relevant agreement—the Sixth VAT Directive of 1977—would require the unanimous agreement of the member states of the European Community. The United Kingdom would be in breach of its more general obligations as a member of the Community if it were to act unilaterally to abrogate all or part of this agreement.