§ Mr. BurstowTo ask the Chancellor of the Exchequer when he plans to implement the extra-statutory concession on VAT for home care, announced in February 2000; and for what reason the concession is linked to proposed changes in Department of Trade and Industry regulations which have yet to be implemented; and if he will make a statement. [147186]
§ Dawn Primarolo[holding answer 25 January 2001]: Customs will implement the Extra Statutory Concession to coincide with the changes in the Department of Trade and Industry regulations on the private recruitment industry. A side effect of these changes could have been an increase in the VAT paid for necessary home care provided by employment bureaux. The concession will 40W mean that the VAT burden on those least able to look after themselves is not increased as a result of the DTI changes, and in many cases will actually go down.