§ Mr. Andrew TurnerTo ask the Chancellor of the Exchequer (1) what guarantees have been obtained from the European Commission that zero-rating of children's clothes for VAT purposes may continue beyond 2007; [131996]
(2) what research he has collated on the cost of (a) children's and (b) adults' clothing in each EU country. [131997]
§ John HealeyThe Government does not need guarantees from the European Commission about the future of the UK's VAT zero rates. Any amendment to the EC Sixth VAT Directive must be agreed unanimously by all member states in the Council of Ministers, and the Government will not agree to changes which go against our national interests and social objectives.
The Government remains committed to retaining the UK's zero rates on children's clothing and footwear.
Data on the cost of children's and adults' clothing in the UK is routinely gathered by the Office for National Statistics and by the European Commission. In addition, Customs and Excise have collected pricing information on children's and adults' clothing and footwear from UK retailers.
This evidence shows that the benefits of the VAT zero rates for children's clothing and footwear in the UK are passed on to consumers.