Written question asked by James Naish (Labour) on Monday, 7 September 2026, in the House of Commons. It was due for an answer on Wednesday, 9 September 2026. It was answered by James Murray (Labour) on Tuesday, 15 September 2026 on behalf of the Treasury.

VAT

Question: To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reducing VAT rates to levels more closely aligned with those in other European countries.

Answer

The Government is aware some European countries apply different VAT rates to certain goods and services, reflecting different tax systems, policy choices and wider fiscal contexts.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services in the UK. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.

Secondary information

Type: Written question
Reference: 27579
Session: 2026-27
Subjects: VAT
Link: View this Written question on www.parliament.uk

VAT

Secondary information

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