THE government's plan to levy VAT on new housing has attracted controversy.
Marc Adams of the Housebuilders Federation was quoted, on October 21, as saying that this would "damage the housing market across the board."
Although billed by John Prescott's DETR as a move to protect the countryside, this is contradicted by another plan that would release maybe millions of acres of agricultural land for development.
There is a more likely explanation. The last Labour government gave the EU (EEC) powers to set Britain's VAT rates, in exchange for a temporary stay of execution.
As the EU now wants VAT harmonisation to complete the Single Market, it has asked for plans to be in place by 2001.
The list of items affected is truly horrific: books, newspapers, children's clothing, food in shops, financial services (eg mortgage policies), social housing (said to be council rents), and public transport fares.
To stem the switch to private transport, this will mean even higher rises in other taxes, which coincidentally are planned in the name of helping the environment.
Can Messrs Brown and Prescott please come clean as to how much extra we will all have to pay as the price of being in Europe?
For more information on developments, please contact me at PO Box 13199, London SW6 6ZU or email newalliance@excite.com.
DR PETER GARDNER
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
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