Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reducing VAT rates to levels more closely aligned with those in other European countries.

The Government is aware some European countries apply different VAT rates to certain goods and services, reflecting different tax systems, policy choices and wider fiscal contexts.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services in the UK. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.