Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of removing the VAT applied to school uniforms in the context of rising living costs.

Under the current VAT rules, all children’s clothing and footwear designed for young children who are less than 14 years of age, including school uniforms, attract a zero-rate of VAT, meaning that no VAT is charged on the sale of these items.

The UK is one of only two countries among the 37 OECD member countries to maintain a VAT relief for children’s clothing, which costs the Exchequer £2 billion per year.

Extending these reliefs would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20 and helps to fund key spending priorities. Any reduction in tax paid is a reduction in the money available to support important public services, including the NHS and policing.

The Government is supporting the hardest hit with £22 billion of help to address the cost of living and cutting hundreds of pounds off household bills, and keeps all taxes under constant review.