§ 37. Mr, Ashtonasked the Chancellor of the Exchequer if he will estimate the extra cost to the Exchequer of each 1 per cent. rise in mortgage interest rates.
§ Mr. Norman LamontA one percentage point increase in gross mortgage interest rates would increase the cost of mortgage interest tax relief by about £400 million in a full year at 1986–87 levels. If other interest rates were also to change by a similar amount (in gross terms), the increased cost would he broadly offset by an increase in composite rate tax receipts in a full year. There would also be other effects on Government revenues.