HC Deb 11 April 1984 vol 58 c264W
Mr. John Fraser

asked the Chancellor of the Exchequer if he will estimate the amount of tax forgone by the Exchequer if the interest paid by local authorities on loans for housing were made eligible for tax relief in the manner of mortgage interest relief at source and on the assumption that the maximum tax rate of the paying authorities was 30 per cent.

Mr. Peter Rees

Since local authorities do not pay direct taxes, there would be no tax forgone by the Exchequer in the circumstances outlined.