HC Deb 07 April 1971 vol 815 cc185-7W
Mr. Hayhoe

asked the Chancellor of the Exchequer from information available from international sources, what are the current rates of interest applicable to Government securities, domestic house purchase, and bank deposit accounts in the member countries of the European Economic Community; and how these compare with the United Kingdom figures.

which direct tax becomes payable in the United Kingdom and in the European Economic Community countries for a single person, a married couple, a married couple with one child aged six years, and a married couple with two children, one aged 12 years and one aged six years, respectively.

Mr. Patrick Jenkin

The information is given in the table below. The threshholds quoted relate to United Kingdom income tax for 1971–72, and for Community countries to the income taxes in force as at 1st January, 1971.

Mr. Higgins

It is not posible to make precise comparisons of domestic interest rates in different countries because of institutional differences and because the data available in international publications relate to rates for different periods of lending and for different conditions as between one country and another. Tax regulations and the existence of additional charges may mean that rates do not represent the effective cost of transactions.

The latest figures available on a broadly comparable basis for the three categories mentioned are given in the table below. Detailed notes on the rates

INTEREST RATES IN EEC COUNTRIES AND IN THE UNITED KINGDOM
December, 1970; per cent, per annum
Belgium France Germany Italy Netherlands United Kingdom
Government securities (yield) 7.72 8.64 8.20 7.90 7.68 8.93
Domestic house purchase 8.75–9.25 9.40–14.10 8.75–9.25 Not available 9.50 8.50
Bank deposit accounts 5.50 4.25 4.75–5.25 Not available 4.66 5.00