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Angela Smith (Basildon): I appreciate that what my hon. Friend has announced is not a tidy way to deal with the problem, but may I make it clear that it will be greatly welcomed by many people in Age Concern? Like thehon. Member for Maldon and East Chelmsford (Mr. Whittingdale), I have written to my hon. Friend on many occasions recently on the matter. As patron of Basildon Age Concern, I thank her for her consideration.

Dawn Primarolo: I always try to assist hon. Members, taxpayers and organisations, especially charities that make such a valuable contribution. Therefore, I think that we can offer charities an alternative. Either they can wait until there is clear agreement between us all on what counts as the services provided now for health and welfare as a result of the tribunal decision, or they can anticipate the agreement by scrutinising the services that they provide and informing customs. However, I must repeat that, if charities interpret the rules as providing a wider exemption than the tribunal decision allows us to provide, we will ask them to pay the outstanding VAT. I hope that, if they choose that way, they will not then argue with the Government, who have been perfectly fair, open and straightforward in dealings with them, when it comes to paying any outstanding tax if it is due.

On that basis, we can take the issue forward. We must clarify what is meant by welfare services and how they affect not-for-profit organisations. We do our best to facilitate and protect those organisations in the current arrangements, but we must move to a speedy conclusion, which I hope that the whole House will accept.

I congratulate the hon. Gentleman on securing the first Adjournment debate of the Session. He chose an excellent subject to start with, because it is about supporting those members of our community who are vulnerable and ensuring that they have the necessary services, supporting charities that make an excellent contribution to our society and, most important, making sure that tax is fair and is seen to be fair. I hope that the hon. Gentleman will accept the assurances that I have been able to give him.

Question put and agreed to.

Adjourned accordingly at sixteen minutes past Ten o'clock.

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