§ Mr. HawkinsTo ask the Chancellor of the Exchequer what would be the value of mortgage interest tax relief if it had been index-linked for inflation since its inception and since 1979.
§ Mr. MaudeIf the mortgage interest relief limit had been indexed in line with the retail prices index since its inception, at £25,000, in 1974, it would be £119,000 in 1990–91. With indexation since 1979, the ceiling would be £57,000. The latest estimates of the total cost of mortgage interest relief in 1990–91, with the limit at these levels, are £9.9 billion and £9.3 billion respectively compared with £7.8 billion for the current limit of £30,000. The estimates exclude behavioural effects, which would be substantial.