§ Mr. McNamaraTo ask the Secretary of State for Northern Ireland how he intends to allocate the additional revenue in Northern Ireland from value added tax consequent upon the Chancellor of the Exchequer's Budget statement.
§ Dr. MawhinneyAs indicated by my right hon. Friend the Chancellor of the Exchequer in his Budget statement, this change arises from a substantial switch from local to 87W central taxation in the United Kingdom as a whole and will result in reduced domestic rates bills in Northern Ireland.
§ Mr. McNamaraTo ask the Secretary of State for Northern Ireland what measures he is taking to limit the impact of the rise in value added tax upon citizens in Northern Ireland.
§ Dr. MawhinneyIn view of the long-standing principle of parity in taxation throughout the United Kingdom, no such measures are necessary or appropriate.
§ Mr. McNamaraTo ask the Secretary of State for Northern Ireland what additional funds he is allocating to local government bodies and area boards following the increase in value added tax.
§ Dr. MawhinneyVAT paid by local government bodies and area boards is recoverable and the increase will not therefore affect expenditure.
§ Mr. McNamaraTo ask the Secretary of State for Northern Ireland what estimate he has made of the reduction in rates by each council in Northern Ireland as a result of the increase in value added tax.
§ Dr. MawhinneyThe total domestic rate poundage in each district council area will be reduced by an additional 82p. The district rate element remains unchanged but the reduction in the total domestic rate poundage—the domestic regional rate plus the district rate—will be 36 per cent. on average.