Written question asked by Nicholas Winterton (Conservative) on Thursday, 2 April 2009, in the House of Commons. It was due for an answer on Monday, 20 April 2009. It was answered by Stephen Timms (Labour) on Monday, 20 April 2009 on behalf of the Treasury.

VAT: Construction

Question: To ask the Chancellor of the Exchequer if he will widen the range of construction products and the labour associated with their installation to which a reduced rate of value added tax applies.

Answer: All taxes are kept under review and any changes are made as part of the Budget process.VAT is governed by EU agreements entered into by successive Governments. Under these agreements EU member states may only apply a reduced VAT rate to a prescribed list of goods and services.The Government only apply reduced VAT rates where they believe these would provide well-targeted and cost-effective support for their policy objectives, compared to other measures.

Secondary information