Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of lowering VAT on construction projects on town centre regeneration.

The Government supports town centre preservation and regeneration. In September, the Government launched an overarching Pride in Place programme, providing up to £5bn over 10 years to support almost 250 places. It will target investment to communities that need it most, addressing the visible decline on high streets and the wider public realm. Local areas will be able to invest in things like youth clubs, libraries, community grocers, cultural venues, and health and wellbeing services.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.