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Value Added Tax

Volume 485: debated on Thursday 18 December 2008

15. To ask the Chancellor of the Exchequer what estimate he has made of the savings that will be made by a person earning (a) £200,000 per annum and (b) £20,000 per annum as a result of the reduction in the rate of value added tax to 15 per cent. (244646)

No such estimates have been made because such savings are more dependent on spending patterns, which vary widely, rather than on earnings.

16. To ask the Chancellor of the Exchequer what consideration he gave to increasing the rate of value added tax above 17.5 per cent. prior to his statement on the pre-Budget report. (244647)

As both the Prime Minister and the Chancellor of the Exchequer have already said in this House, a large number of options on just about every aspect of tax and spending were considered in the run-up to the pre-Budget report. The Chancellor announced that while VAT would comedown to 15 per cent., it would return to 17.5 per cent, at the end of 2009.