§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what sources his Department uses to cost policy options relating to the effects of changes in indirect taxation rates on consumers.
§ Sir Geoffrey Howe[pursuant to his reply, 17 March 1982, c. 124]: Policy options are costed using the Treasury model of the economy. The methods and assumptions used for calculating the revenue effects of indirect tax changes quoted in answer to parliamentary questions and in table 2 of the Financial Statement and Budget Report are described in an article in the March 1980 edition of Economic Trends. There is a copy in the Library of the House.