§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the saving to the Exchequer in a full year at 1988–89 rates of taxation and income of(a) abolishing mortgage interest relief against higher-rate tax, (b) offsetting unearned income in excess of £200 a year against the relevant interest payment and (c) combining both (a) and (b); and if he will publish in the Official Report a table showing in each case his estimate of the numbers affected and the consequential saving by income bands.
§ Mr. Norman LamontThe latest estimate of direct revenue yield, in 1988–89 terms, of restricting relief on mortgage interest to the basic rate is £320 million. This estimate is based on the assumption that the mortgage interest rate in October 1988 continues to apply for the remainder of 1988–89. I refer the hon. Member to the replies which I gave him on 29 July. The first of these