§ Mr. WigleyTo ask the Chancellor of the Exchequer what is his latest estimate of(a) the additional revenue accruing in 1991–92 and in 1992–93 respectively, from the increase in value added tax to 17½ per cent. and (b) the total additional expenditure incurred in each year from the change in the rate of value added tax.
§ Mrs. Gillian Shephard(a) The increase in VAT from 15 to 17½ per cent. will produce an estimated additional £3,900 million in receipts in 1991–92 and £5,515 million in 1992–93.
(b) The VAT rate was increased in the 1991 Budget as part of a switch from local to central Government taxation. The overall effect on purchasing power and consumer demand of this switch is broadly neutral so we do not expect the level of total expenditure to have changed significantly.
§ Mr. Alfred MorrisTo ask the Chancellor of the Exchequer what was the cash amount paid in value added tax by a family with two children on average earnings in 1979; and what is his latest estimate for the amount now.
598Winformation, published in the Court of Auditors' report, is given in the table for the years 1986 to 1990. Estimates for 1991 and 1992 are not available.
§ Mr. Norman LamontA married couple with two children on average male earnings is estimated to have paid £6.55 a week in VAT in 1978–79 at 1991–92 prices. It is estimated that a similar family will pay £17.65 a week in 1991–92.