Member

Amendment 201 in the name of the noble Lord, Lord Mohammed, is on the issue of removing VAT. Under current VAT rules, all children’s clothing and footwear designed for children who are less than 14 years of age, including school uniforms, already attracts a zero rate of VAT. Indeed, the UK is one of only two among the 37 OECD member countries to maintain a VAT relief for children’s clothing, which costs the Exchequer £2 billion per year. I know the Liberal Democrats are feeling flush and calling for further expenditure, but going further on the current VAT provisions would come at a cost to the Exchequer, and I am not convinced that this would be the best use of public money. Therefore, we have no current plans to go further on this issue at this point.