Below is the text of Mr Major’s comments on VAT, made outside Lancaster House on 28th July 1992.
The Chancellor reached a very good agreement yesterday on Value Added Tax. Valued Added Tax has been a Community tax since the Treaty of Rome. What happened yesterday was that the Chancellor secured our nil rates of VAT – that is vitally important. We secured a minimum rate of VAT which means we do not have to change our rates of tax at all – many other countries have to change their rates of tax. We also secured, as part of a general package, an extremely beneficial deal for Scotch whisky. It was a good day yesterday and I think it is a very satisfactory outcome from our point of view.