§ Mr. Bob RussellTo ask the Chancellor of the Exchequer what representations he has received in favour of the restoration of zero rating for value added tax on(a) new scout hall buildings, (b) scout hall extensions and (c) other community youth organisations; when the decision was taken that VAT should be levied; if he will rescind that decision; and if he will make a statement. [R] [125073]
§ Dawn PrimaroloWhen VAT was introduced the construction and extension of any building was zero-rated. In 1984 the relief for extensions was withdrawn. Following infraction proceedings by the European Commission, the relief for constructing new buildings became restricted to only certain types of building in 1989. New buildings used by charities for non-business purposes or as village halls can still be zero-rated. Agreements with our European partners mean that we cannot re-introduce any zero rates that we have given up.
In common with all charities Scout and other youth halls will benefit from the zero rate where the conditions for relief are met. Treasury Ministers have received a number of representations on this matter on behalf of the Scout Association.