§ Mr. Ieuan Wyn JonesTo ask the Chancellor of the Exchequer if he will estimate the change in Treasury 655W income during the 1988–89 financial year resulting from raising value added tax to (a) 16 per cent. and (b) 20 per cent.
§ Mr. LilleyThe estimated net additional revenue in 1988–89 would be:
Rate of value-added tax Per cent. £ million 16 945 20 4,560
§ Mr. Ieuan Wyn JonesTo ask the Chancellor of the Exchequer what is his estimate of the revenue during the 1988–89 financial year which would result from imposing value added tax on(a) new building work and (b) publications, other than books, where the use of new paper is greater than 80 per cent.
§ Mr. Lilley(a) It is estimated that the net additional revenue in a full year at 1988–89 prices from the imposition of value added tax at the standard rate on new building work would be £1,250 million. Because of the uncertainties involved in estimating the effects of such a change on the construction sector, this estimate should be taken as no more than an indicator of the order of magnitude.
(b) I regret the information is not available.
§ Mr. BerminghamTo ask the Chancellor of the Exchequer if, in the light of the recent pronouncement by Lord Cockfield regarding proposed European Commission measures for the completion of the internal market in the EEC, he will make a statement on his policy towards imposing value added tax on books, newspapers and periodicals.
656W
§ Mr. Lilley[holding answer 18 January 1988]: Decisions on changes in value added tax are a matter for my right hon. Friend the Chancellor of the Exchequer's Budget judgment. My right hon. Friend the Prime Minister has already made it clear that the United Kingdom will not accept proposals which restrict our right to apply zero-rating.