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VAT

Volume 486: debated on Tuesday 13 January 2009

To ask the Chancellor of the Exchequer what assessment he has made of changes in consumer spending behaviour attributable to the reduction in the rate of value added tax. (245842)

An assessment of the impact of the VAT rate cut on projected consumer spending behaviour can be found in paragraphs 2.40 to 2.45 in the 2008 Pre-Budget Report. No assessment has been made yet since the reduction took effect.

To ask the Chancellor of the Exchequer what assessment he has made of the extent to which the reduction in the rate of value added tax has met his objectives for the policy. (245844)

We have reduced the standard rate of value added tax to 15 per cent. from 1 December 2008 to 31 December 2009 as part of a wider fiscal stimulus. It would be premature to attempt to make an assessment now of the effect of this 13-month reduction in stabilising the economy, but we have met our objective of helping the UK's two million VAT registered businesses to make the change from 1 December, and many have been passing on the reduction to consumers through lower prices from that date.

To ask the Chancellor of the Exchequer what steps he plans to take to encourage businesses to reduce immediately prices in line with the new rate of value added tax. (245845)

The Government have called on businesses to pass on the VAT rate reduction through lower prices to help stimulate consumer spending and ensure both businesses and consumers can benefit from the change. Many businesses have done so, and in the UK's highly competitive retail sector, consumers can choose whether or not to buy from businesses that do not pass the reduction on. But decisions on prices are for businesses rather than Government.

To ask the Chancellor of the Exchequer (1) how much revenue was raised from value added tax on sales of domestic microgeneration technology of each type in each of the last three financial years; (246286)

(2) how much revenue was raised from value added tax on domestic insulation products in each of the last three financial years.

HM Revenue and Customs does not collect data on VAT raised from individual goods and services.