§ Mr. PaiceTo ask the Chancellor of the Exchequer what would be the cost to the Treasury if MIRAS were available at a basic rate of taxation equal to 18 per cent.
§ Mr. Lilley:1f basic rate tax relief on mortgage interest payments were given at 18 per cent. rather than 25 per cent. in 1990–91, the direct cost of mortgage interest relief would fall by about £2.25 billion. This assumes that higher rate relief would continue to be given where appropriate at 15 per cent. above the basic rate relief. No allowance is made for any behavioural change.