George Osborne gives his strongest hint yet that the tampon tax will be scrapped

George Osborne has given his strongest hint yet that the tampon tax will be scrapped.

The Chancellor told BBC Radio 4's Today programme that he believes we are "on the verge" of getting an agreement from Brussels - and should have an answer "in the next few days".

He said he "perfectly understood" people's anger at paying the tampon tax - and defended his decision to streamline the money raised from VAT on sanitary products to women's charities, domestic violence support and women's health charities.

But Osborne, who unveiled his 2016 Budget on March 16, stopped short of agreeing to reduce the rate unilaterally, if an agreement is not reached.

"I said we will get agreement that we can reduced this rate this to zero and I think we are on the verge of getting it," he insisted.

"I think we are going to get that agreement in the next few days, we hope, and people will see two crucial things about this Government: first of all, we are a strong voice in the world and we get what we ask for because we are at the top table, and second, we do the right thing by our country.

"Here we are, using money raised from our taxes on great charities and great public services which in the end is what it's all about."

At the moment the rules regarding which so-called 'luxury items' are subject to VAT is dictated by Europe. Sanitary products are included in that list and duly taxed at 5 per cent.

The Government is facing a revolt by Tory MPs demanding it acts unilaterally to withdraw the charge, even if it defies EU rules.

Labour MP Paula Sherriff, who has described the tax as a "tax on women", has tabled an amendment to the Finance Bill - due to be debated later this month - which would force the Government to reduce the VAT on sanitary products to zero.

She's received widespread cross-party support and the amendment looks likely to go through.