To ask the Chancellor of the Exchequer how many VAT registration applications were received in each of the last five years; what the average time taken to process such applications was in each year; what the target time is to process such applications; and how many and what proportion of applications were processed within that target time in the latest period for which figures are available. (144728)

VAT registration is the entry point to Missing Trader Intra-Community and other fraud—which reduced VAT receipts by an estimated £2 billion to £3 billion (2005-06). It is right that HM Revenue and Customs take steps to stop those who would abuse the system.

However, HMRC recognise that there has been a problem in recent months with delays in processing the VAT registration applications of genuine businesses. HMRC has put in place plans to improve the processing of registrations and already have additional staff in post and IT investment under way.