A Treasury minister has reaffirmed the government’s commitment not to impose VAT on printed newspapers.

Speaking in a Commons debate, Andrew Leadsom told MPs: “The Government remain firmly committed to our ability to maintain the UK’s existing zero rates as we recognise their importance for social reasons.

“When the UK joined the European Community in 1973 we successfully negotiated to keep our existing zero rates on items such as children’s clothing, most foods and physical books, newspapers and journals —a derogation from which most other member states do not benefit,” she added.

However the exemption does not apply to e-newspapers where the standard 20pc VAT rate applies.

Economic Secretary to the Treasury Ms Leadsom explained that EU VAT rules do not permit member states to extend the scope of existing VAT reliefs or to introduce new ones.

The UK government feared that if it allowed e-newspapers and books to benefit from a reduced or zero rate, the Commission would take legal proceedings against the UK in the European Court of Justice.