§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is the estimated cost of the tax concessions on life assurances and what savings could be made in the public sector borrowing requirement by abolishing this concession.
§ Mr. Peter ReesThe estimated cost for 1979–80 is £425 million. If the concession were abolished the potential reduction in the public sector borrowing requirement would be somewhat smaller.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the value of life assurance premiums on which tax relief will be paid in the current year; what proportion of the total is likely to be in the form of endowment assurance against the repayment of a mortgage on housing; and what is the estimated cost to the Exchequer of tax relief on such endowment assurance.
§ Mr. Peter ReesThe estimated value in 1979–80 is £2,450 million. I regret that there is no reliable information about the value of, or tax relief on, life assurance premiums on endowment assurance in connection with house purchase.