§ Mr. Norman Hogg
To ask the Chancellor of the Exchequer (1) if he will estimate the revenue cost of mortgage interest tax relief projected for the year 1989–90;
(2) what was the revenue cost of mortgage interest tax relief for 1986–87, 1987–88 and 1988–89.
§ Mr. Norman Lamont
[holding answer 20 July 1989]: The estimated costs of mortgage interest tax relief in the United Kingdom are shown in the table. The cost of 639W mortgage interest in 1989–90 is based on the assumption that interest rates remain at current levels for the rest of 1989–90.
Cost of mortgage tax relief £ million 1986–87 4,670 1987–88 4,800 1988–891 5,500 1989–901 6,750 1 provisional.