§ Mr. Austin Mitchellasked the Chancellor of the Exchequer if he will estimate how much revenue would be raised by the imposition of value added tax at 15 per cent,. on new houses other than council houses.
§ Mr. BrookeThe question is hypothetical and it is difficult to make an accurate estimate of such a major change. However, bearing these reservations in mind, it is estimated that the net additional full year revenue of imposing value added tax at 15 per cent. on private new housing would be about £575 million (at 1986–87 prices).