§ Mr. Austin Mitchellasked the Chancellor of the Exchequer if he will publish in the Official Report his estimate of the effect of a further 5 per cent. reduction of interest rates through minimum lending rate on (a) mortgage tax reliefs, (b) council borrowing, (c) central Government borrowing and (d) exchange rate.
§ Mr. LawsonThe effects of a further 5 per cent reduction of interest rates on mortgage tax relief, council borrowing, central Government borrowing and the exchange rate depend on the reasons for the change in interest rates, and on how the economy in general responds to the change.
The issues are complex and I regret that I cannot give an estimate of these effects, which in any event would be of doubtful value given the uncertainties, without incurring disproportionate cost.