§ Mr. Churchill
To ask the Chancellor of the Exchequer if he will estimate the increase in the rate of value added tax required in 1987–88 to replace the revenue currently raised from domestic rates; and if he will make a statement.
§ Mr. Lilley
[holding answer 22 January 1988]: It is estimated that the rate of value added tax would need to be increased by about six percentage points (i.e. from the current rate of 15 per cent. to 21 per cent.) to replace the revenue currently raised from domestic rates.