§ Mr. WhittingdaleTo ask the Chancellor of the Exchequer what discussions his Department has held on a reduced VAT rate on labour intensive services; and if he will make a statement. [61886]
§ Dawn PrimaroloThe European Commission's suggestion that Member States should be allowed to apply a reduced VAT rate on an experimental basis to certain local labour-intensive services was discussed at the Council of Finance Ministers on 16 February 1998. It has also been discussed in meetings of the Council Working Party on Financial Questions. However, the Commission has not yet brought forward any formal proposals on this subject.