Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the cost impact on the public purse of zero rating VAT for children's play centres.

The Government recognises the vital role that children’s play centres play in supporting working families and their contribution to communities across the country. To support them and other businesses we are introducing new permanently lower business rates for eligible retail, hospitality and leisure (RHL) properties, including soft play centres. These tax reductions are worth nearly £1 billion per year and will benefit over 750,000 properties.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. A tax relief here would come at a cost to the Exchequer, reducing the revenue available for vital public services and would have to represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.