Supplementary memorandum by HM Treasury
(UWP 118A)
You will recall that, at the hearing on 12 April,
I was asked a number of questions about Lord Rogers' recommendations
on VAT on housing.
As I stated to the Committee, the Government
has welcomed the Urban Task Force's report on encouraging an urban
renaissance and is giving careful consideration to all 105 of
Lord Rogers' recommendations. Customs and Excise are responsible
for the administration of VAT and therefore have overall responsibility
for examining the recommendations relating to VAT. They are of
course working closely with other departments, notably the Treasury
and the DETR.
I am sure the Committee will appreciate that
it is essential that tax changes are not made in isolation and
that they do not generate undesirable side effects, and these
are just two of the many issues that Customs will be considering.
In terms of timing, this tax issue, like any
other, will be considered as part of the annual Budget process.
I hope this is helpful to the Committee in clarifying
the position.
Stephen Timms
Financial Secretary
22 May 2000
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