Children’s clothing is set to stay free of VAT, according to the Chancellor Gordon Brown.
Brown was speaking to European finance ministers in Italy at the weekend and claimed that The European Union is on the axing plans to force Britain to levy an additional £1bn of VAT charges, the Sunday Telegraph said.

A probe by the Financial Services Authority into the leak of documents at Belgian brewer Interbrew with regard to an alleged bid for South African Breweries has ended, according to the Daily Telegraph.
In December 2001 Interbrew began criminal proceedings against "persons unknown" for the theft and falsification of documents, which suggested the maker of Stella Artois, was set to bid for SAB.
Interbrew demanded that five UK news organisations returned the leaked documents and went to the House of Lords, before handing over the investigation to the FSA last year.

British American Tobacco could bid £2bn for the cigarette arm of Turkish state group Tekel, the Daily Telegraph said without citing sources.
Meanwhile, The Observer reported that BAT is also considering a $4bn takeover of US tobacco group R J Reynolds, with brands such as Camel and Winston.

UK drinks giant Allied Domecq is set to begin takeover talks with Aussie winery Peter Lehmann, The Independent on Sunday said.
AD already has a 14.5% stake in the company.