To ask the Secretary of State for Environment, Food and Rural Affairs what discussions she has had with (a) the Chancellor of the Exchequer and (b) the Inland Revenue about the VAT status of conservation boards. [105477]

Following discussions about the role and contribution of conservation boards my hon. Friend, the Economic Secretary to the Treasury, has considered the implications and has explained that conservation boards will not meet the criteria set out for bodies to be able to recover VAT payments. We are considering the implications of this and will discuss the options with the Countryside Agency.