HC Deb 15 February 1990 vol 167 cc386-7
13. Mr. Cunliffe

To ask the Chancellor of the Exchequer what was the total amount of mortgage interest paid by owner occupiers for 1988; and what is the comparative amount for the first three quarters of 1989.

Mr. Ryder

The figures are £22.1 billion and £23.5 billion.

Mr. Cunliffe

Does the Minister agree that those are appalling and indefensible figures? Many of us believe that they are a direct result of the inept, suicidal and disastrous Government economic policies. Will he give some words of relief and wisdom to mortgage payers who are faced with the financial trauma of consistently increasing rates? Does he agree with the present Secretary of State for Employment, the former Minister responsible for housing, who recently made the corny and insulting comment that if one is feeling the pinch because of mortgage interest rates payments one should take in lodgers?

Mr. Ryder

I appreciate that high mortgage rates cause distress to all mortgage payers, and particularly to young married couples. But we have to continue to bear down on inflation. Once inflation is on a sustained downward path, interest rates and mortgage interest rates will follow.

Mr. Raison

Does my hon. Friend agree that the direct effect of putting up mortgage interest tax relief allowance from £30,000 would be to add to the cost of housing? Would not that be a bad thing?

Mr. Ryder

I have heard the representations made by my right hon. Friend and by my hon. Friend the Member for Dartford (Mr. Dunn) earlier today. I am sure that my right hon. Friend the Chancellor of the Exchequer will take those views into account when formulating his Budget by 20 March.