Oral Answers to Questions

Sarah Jones Excerpts

Thursday 7th September 2017 Commons Chamber

[Mr Davis]

Well, my right hon. Friend can be as gentle with me as she likes. The simple truth is that, before the Lancaster House speech, we went through a process of considering what the best negotiating strategy would be, in some detail. We looked at who would have to negotiate with, where the compromises would have to be made and what the gains would be. We came to the conclusion that the route we are now taking, involving discussions with the member states initially and now with the Union and a transition based on maintaining the important components of what we currently have, is the best way to do it.

[Sarah Jones (Croydon Central) (Lab)]

9. What discussions he has had with the Chancellor of the Exchequer on changes to VAT rates after the UK leaves the EU.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)]

The Secretary of State and the Chancellor are working together to deliver the UK’s departure from the European Union. Our future relationship with the EU, including on VAT, will be subject to negotiations. Any decisions on VAT rates will be taken by the Chancellor as part of the normal Budget process.

[Sarah Jones]

Our children go back to school this week, and parents are still paying a fortune for branded school uniforms. Cutting VAT on uniforms for older children would save some £200 million, but this cannot be done under current EU law. My constituents have asked me to ask Ministers to raise this matter whenever the negotiations turn to VAT.

[Mr Baker]

The hon. Lady raises an interesting point, which I know has been heard by those on the Treasury Bench and will be heard by the Chancellor. However, I would gently point out to her that VAT raised £120 billion in 2016 and provides essential funding for public services, including education.