To ask the Chancellor of the Exchequer what advice he has received from the European Commission as to which Government housing policy measures qualify for a lower rate of VAT because they are defined as the supply, construction, renovation and altering of housing as part of social policy under Annex H of the Sixth VAT Directive. [30265]

The Commission's view is that a reduced rate provided under this category could be applied only narrowly, and should be specifically targeted to benefit the less well off.