To ask the Chancellor of the Exchequer what assessment he has made of the potential for revision of EU tax regulations to permit a reduction in the rate of VAT charged on independently certified wood products; and if he will make a statement. [104084]

Under long-standing formal agreements with our European partners, we are only permitted to introduce reduced rates of VAT for a prescribed list of goods and services set out in Annex H of the Sixth VAT Directive. Independently certified wood products are not currently among the items included on this list. The provisions for VAT reduced rates are to be reviewed by the European Commission during 2003. We will consider any potential changes to these provisions in due course in the context of this review.