§ Mr. Curry
To ask the Chancellor of the Exchequer what is the current yield from value added tax on standard rated supplies in the construction industry; and if he will estimate the net additional revenue in a full year from the imposition of value added tax at the standard rate on new construction other than housing.
§ Mr. Lilley
It is estimated that the yield from value added tax on building improvements and alterations will be around £1,250 million in 1987–88. It is estimated that the new additional revenue in a full year from the imposition of value added tax at the standard rate on new construction other than housing would be about £350 million at 1987–88 prices. Because of the uncertainties involved in estimating the effects of such a change on the construction sector, the estimate should be taken as no more than an indicator of the order of magnitude.
§ Mr. Teddy Taylor
To ask the Chancellor of the Exchequer what estimate he has made of the additional revenue which would accrue to the Treasury in a full financial year if value added tax were levied(a) on industry and commerce on the supply of water and sewerage services, (b) on information services other than those intended directly for the public or for the production of zero-rated products, (c) on the construction of buildings for industrial and commercial use and in the community and civil engineering sectors and (d) on supplies of fuel and of protective boots and helmets in so far as they are not supplied to the final consumer at the current uniform value added tax rate; and if he will make a statement.
§ Mr. Lilley
[holding answer 14 December 1987]: It is estimated that the net additional full year revenue at 1988–89 prices of imposing value added tax at the standard rate of 15 per cent. would be:
£ millions (a) Sewarage services and water for industry negligible (b) Information services other than those intended directly for the public or for the production of zero-rated products negligible (c) Construction of buildings for industrial and commercial use 350 (d) Fuel and Power to industry 25 (e) Protective clothing and footwear to employers negligible
These estimates provide only a broad indicator of the likely order of magnitude.
§ Mr. Cohen
To ask the Chancellor of the Exchequer if he will arrange to publish and place in the Library the relevant parts of the 1952 notes between the Governments of the United Kingdom and the United States of America which exempted maintenance and equipment contracts for United States forces in Britain from value added tax.470W
§ Mr. Lilley
[holding answer 14 January 1988]: The 1952 exchange of notes to which the hon. Member refers was published as Command Paper No. 8497 in March of that year. A copy is in the Library.