HC Deb 11 March 1986 vol 93 c457W
Mr. Chris Smith

asked the Chancellor of the Exchequer what would be (a) the revenue impact and (b) the employment impact of (i) removing value added tax on building improvements and alterations and (ii) reducing value added tax on all building repairs, improvements and alterations to 5 per cent.; and if he will make a statement.

Mr. Brooke

It is estimated that the net revenue loss in a full year at 1986–87 prices of removing value added tax on building improvements and alterations would be of the order of £500 million; that of imposing value added tax on all building repairs, improvements and alterations at a rate of 5 per cent. would be about £450 million. It is not possible to estimate the effects on employment.