Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings. Remembered, the umbrella charity for the There But Not There campaign, hopes the Chancellor will reimburse the expected £3 million the Treasury will gain from VAT. Remembered, the umbrella charity for the There But Not There campaign, hopes the Chancellor will reimburse the expected £3 million the Treasury will gain from VAT.Credit:News Scan Most notably, VAT was returned to charities benefiting from the sale of the 888,246 ceramic poppies that had been planted at the Tower of London and were then sold for £25 each. A defence minister has taken the unusual step of backing a campaign urging his own Government to refund VAT on an Armed Services charity’s fundraising project.Tobias Ellwood, the minister for veterans, is calling on the Treasury to ensure all money raised from a commemoration marking the centenary since the end of World War One goes to help veterans.Sales of ‘Tommy’ figurines, miniature replicas sold as part of the ‘There But Not There’ campaign, have raised nearly £4 million, with the final figure expected to reach £15 million. However, £800,000 has so far been paid in VAT to the Government.In a move backed by Mr Ellwood, General Sir Lord Dannatt, the patron of Remembered an umbrella organisation for six veterans’ charities, has written to the Chancellor Philip Hammond urging him to use money from the Libor fund to repay the VAT.–– ADVERTISEMENT ––It follows the 2013 decision by the then chancellor George Osborne to give £1.1 million raised from fines imposed on banks involved in rigging interest rates as a VAT rebate to Armed Forces charities. The life-size outline statue of a First World War soldier stands at the Giant's Causeway in County Antrim, Northern Ireland, as part of national art installation, There But Not There. It emerged earlier this year that £326 million of other Libor funds which had been earmarked for Forces charities had been used to plug shortfalls in ministerial budgets.In his letter sent last month, Lord Dannatt said he wanted to remind the Government that he and the charities Remembered represents were well aware that Libor funds promised them had still not been handed over.He wrote: “In light of the recent, and very disappointing, revelation that £326 million of the Libor money intended for charities has been used to top up central Government funds, we believe the Government needs to demonstrate fully the value placed on the service and sacrifice paid by our veterans.”In a statement issued through the charity, Mr Ellwood said he personally wanted to ensure that the sale of Tommy figurines was exempt from VAT.“With estimated sales expected to reach £15 million, then divided between six charities, the net beneficiary will actually be the Treasury on £3 million, with just £2 million going to each charity,” he said.“I hope you agree, given the optics of this and the good causes supported, that there is a strong case for VAT to be exempted.” The Telegraph understands that The Lord Dannatt spoke to Treasury officials a week ago and had been assured the Chancellor would respond within seven days. No such response has been forthcoming. Former British Army officer and defence select committee member Johnny Mercer said: “We know not all the money pledged to military charities from LIBOR made its way to those that needed it most. Questions still need to be answered.“It would go some way to help temper the mood of military charities however, if the Treasury supported this campaign – as it has with others – and pledged to match-fund money raised or at the very least donate the amount paid in VAT.”The First World War commemoration campaign There But Not There was launched in February 2018 after artist Martin Barraud had first exhibited a 6-foot Tommy silhouette in a church in Penshurst, Kent.Proceeds from the sales will be shared among The Royal Foundation, The Commonwealth War Graves Commission, Walking with the Wounded, Combat Stress, Help for Heroes and Project Equinox, a veterans’ housing project in Plymouth.Rowley Gregg, the Director of the There But Not There campaign, former Army Officer and recipient of the Military Cross said: “I would urge the Chancellor, the Prime Minister and the wider Government to each listen to their conscience”. The life-size outline statue of a First World War soldier stands at the Giant’s Causeway in County Antrim, Northern Ireland, as part of national art installation, There But Not There.Credit: Brian Thompson

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