§ Mr. SillarsTo ask the Chancellor of the Exchequer if he will publish a table showing the total value of mortgage tax relief by planning region in each of the past 10 years.
Cost of mortgage interest relief (£ million) 1979–80 1980–81 1981–82 1982–83 Northern 60 80 70 95 Yorkshire and Humberside 110 155 150 160 North West 135 200 180 215 East Midlands 85 115 110 130 West Midlands 145 160 190 170 East Anglia 45 50 60 75 Greater London 235 280 290 260 Other South East 375 555 600 650 South West 110 140 170 140 Wales 45 65 80 80 Scotland 85 125 120 140 Northern Ireland 20 35 30 30 United Kingdom 1,450 1,960 2,050 2,150 Following the introduction of MIRAS in April 1983, regional information on the cost of mortgage interest relief cannot be extracted from Inland Revenue records. The regional distribution of mortgage interest can be estimated from the family expenditure survey (FES) but, as the sample size for the FES is relatively small, it is not possible to provide robust estimates of regional trends for the period after 1982–83. Accordingly, the following tables show the cost of mortgage interest relief in the United Kingdom from 1983–84 to 1988–89 with the percentage distribution of the relief by region, based on FES data from 1984 to 1986.
Cost of mortgage interest relief (£ million) 1984–85 3,580 1985–86 4,750 1986–87 4,670 1987–88 14,800 1988–89 15,500 1 Provisional.
Regional share of mortgage interest relief based on FES data for 1984 to 1986 per cent. Northern 3.8 Yorkshire and Humberside 7.2 North West 9.3 East Midlands 6.3 West Midlands 7.8 East Anglia 3.5 Greater London 14.1 Other South East 26.6 South West 8.5 Wales 4.2 Scotland 7.4 Northern Ireland 1.3 United Kingdom 100.0
§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer if he will give the additional annual cost to the Exchequer in tax relief on mortgage interest payments of every 1 per cent. rise in mortgage interest rates.
§ Mr. Norman LamontI refer the hon. Member to the reply which I gave to the hon. Member for Argyll and Bute (Mrs. Michie) on 12 December 1988 at column426.
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§ Mr. Norman LamontEstimates for the years 1979–80 to 1982–83 have been derived from the results of the survey of personal incomes and are given in the table.
§ Mr. SoleyTo ask the Chancellor of the Exchequer if he will estimate the saving to the Exchequer of paying mortgage income tax relief at the standard rate of tax only.
§ Mr. Norman LamontThe 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 £330 million. No allowance has been made for the effect of any consequential changes to the distribution of outstanding mortgages.