Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with (a) his counterparts in other EU member states and (b) industry of the potential merits of introducing a reduced rate of VAT on e-publications; and if he will make a statement.

Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.

The Government is aware of moves in some EU Member States to apply a reduced rate of VAT to e-publications. Within the UK, officials have met with a range of interested stakeholders, including representatives of the publishing industry, to better understand the functioning of the market.