(Hexham Courant, DECEMBER 2003)

As the festive season is upon us and we approach the Christmas holidays, I am pleased to be able to bring a good news story from the European Parliament.

In the last few weeks Conservative MEPs achieved a victory in the European Parliament in the fight against plans to charge VAT at the full rate on children's clothes and we also secured cross party support for an amendment to allow a reduced rate of VAT on repairs to historic buildings and churches.

At the moment children's clothes are zero-rated for VAT in Britain and, thanks to the actions of MEPs, a proposal by the European Commission to impose the full 17½% VAT on them has been rejected. The European Parliament also adopted an amendment, submitted by one of my colleagues from London, adding repairs to historic churches and all buildings maintained by charities, to the list of those items allowed a reduced rate of 5%.

Hard pressed young families would have been hit by new charges if the European Commission's plan to impose VAT on children's clothes were accepted. Now that cross-party support in the European Parliament to keep children's clothes free of VAT has been secured it is vital that the British Government fights for the same result when finance ministers vote on this is the European Council of Ministers. With 60 tax rises from the Labour government in the last 7 years, families in Tynedale and across our region certainly don't need any more imposed from Brussels.

I know that the maintainance of a reduced rate for repairs to historic churches will be a huge relief to many people. The cost of repairs can be huge and paying full VAT puts an added burden on churches and their congregations. Without this reduced rate, many listed churches in Tynedale may well have ended up as candidates for demolition, which would be a tragic cultural loss to our area.

Over the past few months I have received many letters from concerned constituents about both of these issues. At this time of year when our churches and children are the focus of attention it is good to be able to report this news. May I also take this opportunity to wish all Hexham Courant readers a very Happy Christmas and a peaceful New Year.

Martin Callanan MEP
North East Region; Conservative