Value Added Tax

Part of Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 18th April 1991.

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Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames 12:00 am, 18th April 1991

I should be interested to know whether the hon. Lady would reverse the VAT switch that we made in the Budget, because Labour has been extremely equivocal on that point. Inflationary pressures in the economy are measured by the underlying rate of inflation, producer prices, and the gross domestic product deflator. When one strips out one-off additions such as the VAT addition, it is clear that underlying as well as headline inflation continues to fall.