Retail Price Index

HC Deb 05 July 1977 vol 934 cc515-6W

Mr. Ralph Howell

asked the Secretary of State for Employment whether reductions in income tax are reflected in the retail price index.

Mr. Harold Walker

Payments of income tax are not within the scope of the retail prices index. However, since mortgage interest payments net of tax relief are covered by the index, reductions in the standard rate of tax correspondingly reduce relief and so lead to some increase in the index.