Clause 15 — Assignment of VAT

Part of Bills Presented — Local Area Referendum (Disposal of School Playing Fields) – in the House of Commons at 8:15 pm on 29th June 2015.

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Photo of David Gauke David Gauke The Financial Secretary to the Treasury 8:15 pm, 29th June 2015

As I understand the situation that the hon. Gentleman set out, if services were funded through local taxation, the refund scheme was available. That is no longer the case, as the changes have been made. It therefore does not fall within section 33 as it currently stands. As Wayne David acknowledged, it is technically valid that the refund scheme does not apply.

Many arguments are made in respect of the VAT refund schemes, and requests are made that they be broadened and applied to additional organisations. It is customary for the case to be made that charities, for example, should benefit from such refunds. That comes with significant fiscal cost. Now is not the time to run through the whole argument, but there may well be a case for reconsidering the position, but we should not look at it in isolation because of a particular decision that was made in one case. If there is a case to do that, the matter should be looked at in the round, not just on the basis of one case.