§ Mr. David NicholsonTo ask the Chancellor of the Exchequer if he will estimate at 1989–90 income levels the level to which the ceiling on mortgage interest relief could be raised if the annual cost to the Exchequer were limited to(a) £0.25 billion, (b) £0.5 billion, (c) £1 billion and (d) £2 billion.
§ Mr. Lilley[holding answer 4 December 1989]: Provisional estimates of the costs of increasing the ceiling for mortgage relief above £30,000 are given in the table. All estimates exclude behavioural effects which, for the higher ceilings quoted, would be substantial.
Direct revenue cost at 1989–90 income levels £million Ceiling (£) 250 34,000 500 38,000 1,000 54,000 2,000 no limit