§ Mr. Michael Spicerasked the Chancellor of the Exchequer what would be 336W the cost of abolishing domestic rates and raising the revenue instead from (a) income tax and (b) value added tax, respectively.
§ Mr. KingI have been asked to reply.
In 1979–80, domestic rates yielded about £2,700 million in Great Britain—net of domestic rate relief and rate rebates. This is equivalent to the yield of about 5½p on income tax or to the yield of about 4 per cent. to 5 per cent. on value added tax.