§ Mr. Lawsonasked the Chancellor of the Exchequer what increase in the retail price index and how much extra revenue would result from increases in the standard rate of VAT to: 9 per cent., 10 per cent., 11 per cent., 12 per cent., 12½ per cent., 15 per cent., 20 per cent., 25 per cent., 30 per cent., and 33⅓ per cent.
§ Mr. Robert SheldonIt is estimated that the additional revenue in a full year for raising the standard rate of VAT and the resultant increase in the retail price index would be:
New Standard rate Additional revenue RPI increase (per cent.) (£ million) (per cent.) 9 315 ½ 10 625 1 11 925 1½ 12 1,225 2 12½ 1,375 2 15 2,125 3½ 20 3,575 5½ 25 5,000 8 30 6,250 10½ 33⅓ 7,000 12 The larger increases in the rate of VAT would cause considerable changes in the economy and estimates for them are correspondingly uncertain.