§ Miss McIntoshTo ask the Chancellor of the Exchequer for what reasons he has not applied to the EU for the discretion to apply a reduced rate of value-added tax for selected labour-intensive industries in respect of restoration and repairs of(a) churches and (b) historic buildings. [39872]
§ Dawn Primarolo[holding answer 29 April 1998]: There is currently no provision in the relevant EC legislation for an optional reduced rate for labour-intensive services. The European Commission has floated the idea of such an experimental reduced rate for a limited range of such services, which would not include restoration and churches or most historic buildings. Adoption of this proposal would require unanimity and Member States remain divided as to the merits of this initiative, so there is little prospect of it being pursued.