asked the Chancellor of the Exchequer whether, in his long-term taxation policy, he will move towards a higher rate of duty on tobacco and alcohol in order to allow for a value added tax zero rating of goods and services which contribute to the saving of life.

I have noted my hon. Friend's suggestion. However, any further narrowing of the VAT base could be difficult to justify and, apart from changes at the margin, extension of VAT zero-rating would be contrary to our European Community obligations.