HC Deb 06 March 1991 vol 187 cc160-1W
Mr. Battle

To ask the Chancellor of the Exchequer what is the total amount of mortgage interest relief that would be withdrawn per £1 billion existing relief per year if the relief percentage were reduced by (i) 1 per cent., (ii) 5 per cent. and (iii) 10 per cent. in England and in the United Kingdom.

Mr. Maude

Available estimates for the United Kingdom in 1990–91 are given in the following table.

Reduction in the rate of mortgage interest relief Reduction in mortgage interest relief per £1 billion of relief
Percentage points £ million
1 40
5 190
10 370

Separate estimates in respect of England are not available.

Mr. Battle

To ask the Chancellor of the exchequer what is the total amount of mortgage interest relief that would be saved per £1 billion existing relief per annum if the eligible loan ceiling for such relief for standard rate payers were reduced to (i) £29,000, (ii) £25,000, (iii) £20,000 and (iv) £15,000 in England, the United Kingdom and London and the south-east.

Mr. Maude

Available estimates for the United Kingdom in 1990–91 are given in the table. They relate to all mortgagors and exclude behavioural effects. Estimates for England, London and the south-east are not separately available.

Limit on Mortgage interest relief £ Direct revenue yield per £1 billion of relief £ million
29,000 10
25,000 90
20,000 190
15,000 330

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer what is his estimate of the amount of mortgage interest tax relief going to each economic planning region of the United Kingdom in 1990–91; and what is the average amount of subsidy per person in each region with a mortgage.

Mr. Maude

[holding answer 25 February 1991]: Broad estimates, based on the regional distribution of mortgage interest relief recorded in the family expenditure survey for 1988 and 1989, are as follows:

United Kingdom manufacturing investment (including leased assets) £ million 1985 prices
Year 1985 1986 1987 1988 1989 1990
Actual Investment (a) 10,264 9,656 10,185 11,505 12,421 11,738
Difference from 1978–79 average (a)—£10,937 -673 -1,281 -752 + 568 + 1,484 + 801
1979 Investment Projected at 1974–79 average rate of change (2.1 per cent.) (b) 12,639 12,905 13,176 13,453 13,735 14,023
Difference from actual level (a)—(b) -2,375 -3,249 -2,991 -1,948 -1,314 -2,285
1979 Investment projected at year on year per cent, changes11for:
Japan not available not available not available not available not available not available
France 11,365 11,801 12,449 13,838
USA 11,103 9,905 9,980 10,897
West Germany 11,680 12,589 13,293
OECD2 not available not available not available not available not available not available

Source:

1 OECD National Accounts Volume 2 1976–88. The percentage changes are based on figures, at 1980 prices, of gross fixed capital formation by owners engaged in manufacturing. The coverage is therefore not exactly comparable to the United Kingdom figures which differ, in particular, by the inclusion of leased assets.

2 Figures of gross fixed capital formation in manufacturing are not available for a number of OECD countries. It is not possible to produce average change figures covering the group of countries for which figures are available because all figures are expressed in national currencies.

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