27-10-03

Government must oppose EU children’s clothes VAT plans – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today called on the Chancellor, Gordon Brown, to stand firm against proposals from the European Union, to end the zero rate of VAT on children's clothes.

During a parliamentary debate in the European Standing Committee, John Barrett will say that bringing in a full rate of VAT on children's clothes will hit families on low incomes the hardest with little economical benefit in return.

The European Union is currently holding a review of VAT across Europe.  In July 2003, they produced proposals aimed at streamlining VAT across member states.  Of particular relevance to the UK are plans to scrap the ability of the British Government to keep a zero rate of tax on children's clothes and on several reliefs targeted at charities and disabled people.

In a statement, John Barrett said:

"Although Gordon Brown has pledged to reject the EU proposals, many people remain very sceptical about what will happen when the pressure mounts.  Many still remember the false promises of the last Conservative Government, who pledged not to introduce VAT on fuel to only do the opposite, just a few months later.

"The EU proposals to end the UK's long standing zero rate VAT on children's clothing, as well as the zero rate on reliefs targeted at charities and the disabled will, in all likelihood, hit the most vulnerable in our society.

"The European Union has argued that the UK's use of zero rate VAT hasn't had any social benefit.  If you were to ask the single mother who has to buy clothes for her two children or the disabled person who needs to buy equipment to help them get about, I somehow think you would get a different answer.  For these people, scrapping the zero rate VAT would add even more costs to their everyday lives.  The Government must avoid this at all costs."

ENDS