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VICTORY FOR CHILDREN AND CHURCHES
Thursday 4th December 2003
Conservative MEPs achieved a victory today in the European Parliament in the fight against plans to charge VAT at the full rate to children's clothes. They also secured cross party support for an amendment to allow a reduced rate of VAT on repairs to historic buildings and churches.
Children's clothes are zero-rated for VAT in Britain. MEPs today rejected a proposal by the European Commission to impose the full 17.5% VAT on them. The European Parliament also adopted an amendment submitted by Theresa Villiers MEP, adding repairs to historic churches and all buildings maintained by charities, to the list of those items allowed a reduced rate of 5%.
Timothy Kirkhope, Conservative MEP for Yorkshire and the Humber, said:
"Hard pressed young families would be hit by new costs if the European Commission's plan to impose VAT on children's clothes is accepted. We have now secured cross-party support in the European Parliament to keep children's clothes free of VAT. The British Government must fight for the same result when finance ministers vote on this is the European Council of Ministers. With 60 tax rises from labour, Britain's families don't need more from Brussels.
We have also secured a vital victory on a reduced rate for repairs to historic churches. The cost of repairs can be huge and paying full VAT puts an added burden on churches and their congregations. Without a reduced rate, many listed churches might have to be demolished which would be a tragic cultural loss to our country."
