Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending VAT relief to passenger vehicles used exclusively for tours with under 10 seats.

The supply of transport services in passenger vehicles, including those used for tours, with less than 10 seats is subject to the standard rate of VAT. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere. Therefore, the Government has no plans to extend tax reliefs to passenger vehicles further.