Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the cost to families of VAT on school uniform for 14-16 year olds.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s generous regime for children’s clothing costs approximately £2 billion a year, and we are one of only two countries in the OECD – out of 37 total - that maintain this zero rate.

Expanding the existing relief would also not necessarily succeed in reducing the price of school uniforms. Evidence suggests that businesses only partially pass on any savings from lower VAT rates, instead absorbing the additional saving from tax to increase their profit margin.

Going further by zero-rating all branded school uniform would also carry significant risks that the relief would not remain tightly targeted at those whom it would be intended to benefit. This is because many schools have moved away from traditional styles and uniforms, opting instead for a range of clothing that could be acceptably worn by adults, such as plain white shirts or black shoes.