§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will estimate the saving that would accrue to the Exchequer from limiting all mortgage tax relief to the basic rate in 1988–89.
§ Mr. Norman Lamont[holding answer 12 April 1988]: The direct revenue yield in a full year, at 1988–89 income levels, from restricting mortgage interest relief to the basic rate is estimated to be £280 million. This estimate is based on the mortgage interest rate of 10.25 per cent. at the beginning of 1988–89 and makes no allowance for the effect of any consequential changes to the distribution of outstanding mortgages.