HC Deb 07 June 1991 vol 192 cc372-3W
Mr. Allen

To ask the Chancellor of the Exchequer if he will list by region in tabular form and at constant prices the average monthly domestic mortgage payment payable in the month when interest rates were at their lowest since 1983, the current average mortgage payable and the difference between the two figures.

Mr. Maude

Information for average new mortgages in the second quarter of 1988 is in the table. Details of average amounts outstanding on all mortgages by region are not available.

Mr. Norman Lamont

The Economic and Finance Council of the European Community met in Luxembourg on 3 June. I represented the United Kingdom.

The Council discussed a Presidency package of proposals on VAT and excise rates and systems, the most important elements of which were a minimum standard VAT rate of 15 per cent., minimum rates for all excises and provision for reduced rates including protection for our own zero rates. There was no agreement on the package as a whole and discussion will resume on 10 June.

In the discussion of VAT rates, I restated the Government's view that the centrally imposed approximation of tax rates was not necessary for the establishment of the single market, but I made a statement that the United Kingdom had no present intention of reducing the standard rate of VAT below the 15 per cent. minimum proposed by the Presidency or indeed of making any change to the current rate of VAT of 17.5 per cent.

On excise duties, I argued that, for health reasons, we needed to agree either high minimum rates for the duties on alcohol and tobacco, or limits on the amounts of these goods which can be brought into any member state tax-paid, and I said that the United Kingdom would in principle be prepared to accept a minimum rate for diesel duty which would not oblige us to make any changes to our present levels. Any final agreement will, of course, be subject to parliamentary scrutiny.

In a brief discussion of export credits and tied aid I urged that the European Community should agree to the Helsinki 5 revised package for revision of the Organisation for Economic Co-operation and Development export credit arrangement and of the Development Assistance Committee's draft agreements on tied aid.