Clause 96 - VAT: museums and galleries
Finance Bill
4:45 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
What a nice Committee it is this afternoon. Long may that last—although I have a feeling it is only a lull before the storm. I thank the hon. Gentleman for put my response on the record, so that it is clear.
I assure the hon. Member for Arundel and South Downs that extremely close consultation took place with the Department for Culture, Media and Sport on the issue of the list of the national museums and galleries to which the scheme would apply. We have to go slightly further than that Department. For one reason or another, other Departments sponsor national museums and galleries, all of which are being drawn together for a list that will be published no later than 1 September.
The hon. Gentleman's second question was why do we not simply admit the schemes to section 33. I am sure that he appreciates that section 33 provides for the refund of VAT to local authorities and similar bodies so that VAT does not fall as a burden on local taxation. To be covered by section 33, bodies must carry out a local authority-type function and have the power to levy directly on local taxation; that was the policy of the previous Administration, too. National museums and galleries do not undertake that type of function, so we shall publish a list of the museums that will have access to the scheme.
The hon. Gentleman asked why access to section 33 was so tightly controlled, but then he answered his own question. If it were not, everyone would want access, and that would not be permissible. That is the reason for our approach, which is entirely consistent with the arrangements that we can make within the nationally determined decisions in respect of the sixth directive. The exemption is, in effect, a grant.
Question put and agreed to.
Clause 96 ordered to stand part of the Bill
Clause 97 ordered to stand part of the Bill..
Schedule 30 agreed to.
Clauses 98 and 99 ordered to stand part of the Bill.
Schedule 31 agreed to.
Clauses 100 and 101 ordered to stand part of the Bill.