Commons Sense

House of Commons · Westminster Hall

BACKBENCH BUSINESS

15 June 2023 · 3 other contributors · 6,297 words

Opened by Mike Penning Con Hemel Hempstead

Responding minister: Victoria Atkins

TaxationWomen & Equalities

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Mike Penning raised concerns about backbench business in Westminster Hall. A government minister responded.

Key points

  • VAT on audiobooks is currently 20%, affecting individuals with disabilities such as dyslexia or visual impairment.
  • Mike Penning highlights the inconsistency between VAT exemptions for books and e-books but not audiobooks, citing the Equality Act 2010.
  • The minister acknowledged government initiatives to improve literacy but did not commit to changing the VAT rules on audiobooks.

Key requests to Government

Penning asks the Government to review the VAT rules on audiobooks, citing moral and ethical concerns under existing legislation like the Equality Act. He requests a fair taxation system that does not penalise those with disabilities who rely on audiobooks for education and employment purposes.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Mike Penning Con Hemel Hempstead

The VAT on audiobooks at 20% is an anomaly that penalises individuals with disabilities, including those who are dyslexic or visually impaired. Mike Penning points out the discrepancy between the VAT exemptions for books and e-books while audiobooks remain taxable, highlighting this as a discriminatory practice under the Equality Act 2010. He mentions Scope's report indicating that people with disabilities are £970 per month worse off due to such taxes. Penning also refers to the Prime Minister's promise to abolish the 'reading tax' for e-books and printed books but not including audiobooks.

Other contributors (3)
  • Christine Jardine Lib Dem Edinburgh West

    The MP highlighted the additional costs and scarcity of audiobooks due to VAT, which hinder educational opportunities for visually impaired students from primary to higher education stages. She cited personal experiences with elderly relatives who relied on audiobooks as a crucial aid.

  • James Murray Lab Co-op Ealing North

    The MP praised the initiative to exempt e-publications from VAT since May 2020, and acknowledged the benefits of audiobooks for people with visual impairments or dyslexia. He noted that printed publications have been zero-rated since the introduction of VAT in 1973.

  • Marion Fellows PC Meirionnydd Dwyfor

    Young people especially enjoy audiobooks and it is a real path for them into the joy of reading. However, some will not be able to discover that joy because of the expense. It is a real pleasure to serve under your chairmanship, Mr Sharma... the tax on audiobooks represents to some people. I followed his argument carefully, and I love the idea of him ticking something off his bucket list.

Government Response

Victoria Atkins

The Minister praised the lead MP's personal experience and efforts towards promoting dyslexia awareness. She highlighted government initiatives aimed at improving literacy standards in schools, including phonics teaching and early language education. The minister noted that England ranked fourth globally for primary reading proficiency among 43 countries tested. Addressing VAT concerns on audiobooks, she explained existing exemptions for digital publications but mentioned challenges in extending these due to fiscal considerations. She also emphasized the importance of ensuring benefits reach those with disabilities and acknowledged ongoing work on cost implications.

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