asked the Chancellor of the Exchequer what increase would need to be made in the £5,000 exemption limit for VAT in order to restore the limit to the same real value as when VAT was first introduced; and what proposals he has to raise the exemption limit.

The exemption level would need to be raised to about £6,500 a year. I cannot anticipate my right hon. Friend's Budget Statement.

asked the Chancellor of the Exchequer what he estimates to be the cost of preparing, printing and distributing notices to persons registered for VAT; and what, if any, examination has been made by Her Majesty's Customs and Excise of possible savings arising from a more selective approach to the distribution of those notices to registered persons directly affected.

The average cost of printing and distributing notices and other information to all persons registered for VAT is roughly £100,000 per issue. No estimate can be made of the cost of preparation, which forms only part of the work of the staff concerned.A selective distribution is made whenever it is possible to identify the persons directly affected, and the methods and costs of distribution are continuously under review.