It is a growing problem that puts a strain on the health service and now threatens to hit the family budget.

The rapid rise in obesity levels means that more parents are having to pay VAT when buying clothes for their children, the British Retail Consortium (BRC) said yesterday as it called on the Chancellor to consider a change in the rules.

Under the present regulations there is no VAT on clothing designed for children under the age of 14. However, the exemption is governed by maximum size measurements, such as a chest size of 41 inches for a boy's shirt.

The BRC said that many children were growing so big so fast that they had pushed past these limits before their 14th birthday.

It predicted that the problem would get worse, with the number of girls affected by obesity expected to rise to 910,630 by 2010 - an increase of 35 per cent. The number of boys with similar problems is projected to rise at a slower rate - to 792,320 by 2010.

Jane Milne, director of business environment at the BRC, told The Times: “For so far back in time there has been zero VAT on children's clothing as part of government policy to support families. But the point is with obesity, and better nutrition levels in general, children are getting bigger. The upper limits have to change so that more childrens' clothing falls within the zero VAT band.”

A number of high street retailers have launched a range of super-size school uniforms this summer to reflect the rising obesity levels among children. Bhs extended its “generous fit” range for pupils and decided to offer an adult dress size 18 with a 42-inch bust and 34-inch waist.

Marks & Spencer expanded its sizes last year and John Lewis sells blazers up to a 48-inch chest.

Last month the Schoolwear Association said that at least 25 per cent of families were having to pay VAT on their children's school uniform. It said this meant they were paying a total of £4 million a year in VAT on top of the cost of the clothing.

At the time HM Customs & Revenue said there were no plans to change the VAT rules on uniforms. A spokesman added: “It would be impossible to change the VAT rules every few years just because children are getting progressively bigger.”

However the BRC said that with the problem hitting lower socio-economic families the hardest, the Chancellor should consider changes in his Pre-Budget Report this autumn.

Stephen Robertson, director-general of the BRC, said: “Families are being squeezed by a whole raft of rising costs from increased utility bills to higher petrol prices. The zero rating of clothing and footwear must be reformed.”

The BRC is also calling on the Government to help to push down commercial property costs by granting retailers tax breaks on the exit fees that they have to pay when surrendering leases.

It also wants the Government to ensure that increases in the national minimum wage never exceed the increase in average earnings.

GIRTH CONTROL

Maximum sizes for VAT-free children's clothing

Boys

Shirts, jumpers: 41 inches

Jackets, outerwear: 43 inches

Overcoats: 44.5 inches

Waist: 28.5 inches

Shoes: 6.5

Girls

Shirts, jumpers: 41.5 inches

Jackets, outerwear: 43.5 inches

Overcoats: 45 inches

Waist: 28 inches

Shoes: 5.5

Source: British Retail Consortium

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