§ Baroness Byfordasked Her Majesty's Government:
How they justify the Chancellor's refusal to accept the European Union's offer of a reduction of VAT on building maintenance and repairs to 5 per cent. [HL3057]
§ Lord McIntosh of HaringeyThe recent European Commission proposal which provides for the possibility of a reduced rate of VAT for certain labour-intensive services on an experimental basis is still under discussion. Member states have been asked to draw up a list of the services to which the measure might apply and it is not yet clear whether building maintenance and repair services will be included.