Playgrounds: VAT
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VAT for admissions fees to indoor play centres for children under 12.
Answered by James Murray
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. The Government therefore has no plans to zero-rate VAT on admission fees for indoor play facilities.
The Government keeps all taxes under review.
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