HC Deb 26 November 1987 vol 123 c373
14. Mr. Salmond

To ask the Chancellor of the Exchequer if he will estimate the annual cost to the Exchequer of mortgage interest tax relief.

Mr. Norman Lamont

About £4.75 billion in 1987–88.

Mr. Salmond

Is the Chancellor aware that his lecture in Glasgow last Monday caused great offence to many people in Scotland? Was he displaying a heavy sense of irony in accusing Scottish council tenants of being sheltered from market forces, given that the total public sector housing subsidy for Scotland is £50 million, compared with a subsidy of more than £4,000 million to English private housing? Does he think that it is fair that the south-east of England, with 30 per cent, of the population of the United Kingdom, receives 50 per cent, of mortgage tax relief? Will not Scottish council tenants get fed up with feather-bedding the affluent south-east of England?

Mr. Lamont

One thing that the hon. Gentleman did not point out is that relief per mortgagor in Scotland is higher than in England. House owners in Scotland will be interested to know whether the hon. Gentleman is really advocating the abolition of tax relief for home ownership.

Mr. Paice

At the earliest opportunity, will my right hon. Friend see what can be done to remove the absurdity whereby young couples receive double tax relief on a mortgage by remaining single and cohabiting, yet when they get married they receive single tax relief?

Mr. Lamont

My hon. Friend will be aware that in the Green Paper on personal taxation we put forward a solution to that problem. Unfortunately, the approach that we advocated did not command sufficient support and we have said that we want to reconsider the problem.

Mr. Pike

What does the Minister think of companies, such as Bradford Investments, which give loans to people to purchase houses on rental purchase schemes and receive tax relief on those mortgages, when the purchasers have no protection or rights with regard to those homes? Should not mortgage tax relief in such cases be stopped?

Mr. Lamont

I shall look into the case that the hon. Gentleman has raised.