§ Mr. CormackTo ask the Chancellor of the Exchequer what would be the yield from VAT on domestic fuel at(a) 17½ per cent., (b) 8 per cent. and (c) 5 per cent.
§ Sir John Cope[holding answer 26 October 1993]: The Financial Statement and Budget Report gives an estimate of £930 million for the yield of 8 per cent. VAT on domestic fuel and power applied in 1994–95. The first full year of revenue at 17½ per cent. is 1996–97 when the 677W revenue is estimated to be £2,850 million. Table 9 of the publication, "Tax Ready Reckoner and Tax Reliefs", implies that the revenue from 5 per cent. VAT on domestic fuel and power in 1993–94 would be £700 million though this estimate makes no allowance for behavioural changes.
§ Mr. Austin-WalkerTo ask the Chancellor of the Exchequer what estimate he has made of the likely revenue income from imposition of VAT on books, newspapers and other publications; what calculation he has made of the possible effect upon employment in the printing, publishing and allied industries as a result of imposition of VAT on those items; and what estimate he has made of the cost to the Exchequer of such job losses in terms of benefits payable, loss of pay-as-you-earn and national insurance contributions and Government contributions to redundancy payments.
§ Sir John Cope[holding answer 26 October 1993]: Table 9 of the Treasury's "Tax Ready Reckoner and Tax Reliefs" provides an estimate of £1,100 million as the cost of zero-rating books, newspapers and magazines in 1993–94. This estimate makes no allowance for the likely behavioural response to applying the standard rate of VAT to these items. The consquences for employment and second order effects are difficult to estimate with accuracy.