Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of applying VAT to private hire journeys outside London on the private hire industry.

Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to VAT. The Government continues to take the issue of VAT treatment of private hire vehicle services seriously and recognises the importance of clarity to the sector. It is right, however, that decisions on tax policy are taken at fiscal events in the context of overall public finances. The Government will therefore publish a response to the consultation soon.