§ Mr. Ron Davies
To ask the Secretary of State for Wales if he will make a statement of the effect on jobs, rural energy and areas dependent on tourism of the extension of VAT to cover tourism activities and entrance fees to tourist sites.
§ Mr. Redwood
The application of VAT is a matter for my right hon. and learned Friend the Chancellor of the Exchequer, who announced on 29 November that services relating to entertainment or recreational activities and car parking at airports, which include passenger transport, will become wholly standard rated. The measure will affect a limited range of businesses in Wales.