Will Waspe's Whispers
Sir Derek WalkerSmith's committee-stage amendment to the Finance Bill, seeking a zero rating on works of art for VAT purposes, was neatly 'bought off' by the Chancellor with an announcement that 'further discussions' on the position of works of art were taking place. I doubt very much whether the trade will be greatly mollified by the results of such discussions. The best the dealers can hope for is some formula to protect the export market — concern for which is, of course, only the piously altrustic window-dressing on their case.
They can, however, console themselves with threads of hope already denied the theatre which will get no exemption from VAT. Sympathetic MPs of all parties claim that the tax will kill off many theatres.
The joker in this pack is that only commerical theatres will suffer. Those that are already kept alive by Arts Council subsidies will simply ask for — and will indubitably get — larger state hand-outs to save them from the effects of the state tax. It is a curious situation for 'free enterprise ' enthusiasts to contemplate, and perhaps the end-product will be much the same as that foreseeable in the case of the Tot and the free-enterprise bookmakers. The latter, that is to say, will eventually perish.
Previous page
