Universities: VAT on Alterations to Listed Buildings

Debate between Lord Sassoon and Baroness Deech

Thursday 5th July 2012 Lords Chamber

[Baroness Deech]

To ask Her Majesty’s Government what evaluation they have made of the impact on universities of the removal of the zero rate of VAT for alterations to protected buildings.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, removing the zero rate of VAT from alterations to listed buildings, including those belonging to universities, removes a perverse incentive to change rather than repair them and ensures that all alteration works receive the same tax treatment. The change makes the VAT rules simpler for businesses to understand and reduces the scope for error and non-compliance. In the Government’s assessment of the impact of the measure included in the consultation response published on 28 June, no separate assessment was made of the impact on particular categories of listed building.

[Baroness Deech]

Does the Minister fully appreciate that the proposed removal of zero-rated VAT for much needed university alterations to listed buildings will have a severe impact on those universities? Not just Oxbridge, but nearly every university old and new has listed buildings and the sector as a whole will have to find an additional £150 million over the next five years. It is like an extra tax which will reduce the amount that universities have for bursaries. Will the Minister accept that the situation could be rescued without a U-turn if the Government were to limit zero-rating to buildings owned and occupied by charities?

[Lord Sassoon]

My Lords, I fully accept that universities will be affected, but that is not a reason not to go ahead with this measure. It is for sound and principled reasons, which I have summarised. There has been an extensive consultation process, including my honourable friend the Exchequer Secretary meeting representatives from a number of Oxbridge colleges, including the noble Baroness’s successor as principal of St Anne’s College, Oxford. There have been various numbers, including numbers coming from Oxford, which seem to vary considerably, meeting by meeting. I do not therefore recognise the £150 million figure, but I accept that there is a cost. As a result of the consultation, there have been significant changes to extend the transitional period and some of the details of the transition, but the change will go ahead.

Taxation: Plastic Bags

Debate between Lord Sassoon and Baroness Deech

Monday 28th May 2012 Lords Chamber

[Lord Sassoon]

My Lords, I agree with my noble friend that progress has been made. We would like to see more progress, of course, but all that has been done without a minimum charge or any form of taxation. The Government encourage all these initiatives.

[Baroness Deech]

Will the Minister extend his concern to the equally wasteful and annoying practice of sending out parliamentary mail in plastic bags that are very difficult to open, not to mention the plastic bags you have to use for little bottles of liquid when going through airport security? However, the mail coming from Parliament is especially wasteful of plastic.

[Lord Sassoon]

My Lords, I am sure that the authorities of the House have listened carefully to that bit of advice.