Dan Neidle

And there are countries like Denmark, like New Zealand that do that.

We should be copying them, not countries like France that have a whole bunch of special deals to suit special interests, including, yes, hospitality.

Yeah, I mean, the total amount of GDP raised from VAT varies, but the base, the stuff which is taxed, is just as important as the rate.

In this country, we have a kind of average rate at 20%, but our base is incredibly narrow, one of the narrowest in the world.

We're much better off having a lower rate.

and a wider base, none of which is going to help restaurants.

But the problem with restaurants isn't VAT.

VAT has always, well, for a very long time, been the same rate.

That's not causing the problem.

We need to look at what the problems are and solve those problems rather than reaching the VAT as some kind of cure or solution, because it's a really bad solution for problems caused by other things.

It would be simpler for everybody.

It would be much cheaper for businesses to apply.

It would be cheaper for government to collect.

Children's clothes, for example.

If you look on the Harrods website, you will find an £8,000 girl's gold jacket.

That is free from VAT, thanks to...

Us.

That is not a sensible use of other sources.

Much better would be to abolish the VAT exemption for children's clothes, use some of the savings to increase child benefits that the average family is not worse off, and book the savings to slightly reduce the rate.

Now, children's clothes are a fairly small element.