Derby

Ice cream makers make VAT appeal to government

  • 13 April 2011
  • From the section Derby
Ice creams
The Ice Cream Alliance is the national body for the ice cream industry

British ice cream makers want the government to give their industry a boost by removing the VAT charged on their products.

Manufacturers say recent wet summers and a rise in the cost of ingredients and fuel have hit sales.

Now the Derby-based Ice Cream Alliance is writing to the Chancellor, George Osborne, suggesting he reclassify it as a food rather than a luxury item.

Such a move would see ice cream's VAT loading reduced from 20% to zero.

Zelica Carr, the Ice Cream Alliance's chief executive, said: "Ice cream plays an important if under-appreciated role in British life.

"It provides an affordable feel good factor which in today's climate is sadly lacking for many families."

The organisation, which represents more than 600 businesses, estimates the ice cream industry is worth about £1.3bn a year.

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