HC Deb 28 July 1977 vol 936 c521W
Mr. Pardue

asked the Chancellor of the Exchequer if he will estimate the effect on the retail price index and pensioners' price index, respectively, of a 1 per cent. increase in the basic rate of VAT and the higher rate of VAT, respectively.

Mr. Robed Sheldon

Increasing the standard rate of VAT from 8 per cent. to 9 per cent. would raise the general index of retail prices by about ½ per cent. and the pensioners' index by about ⅓ per cent. The effect on these indexes of increasing the higher rate from 12½. per cent. to 13½ per cent. would be under one-tenth of 1 per cent.