HC Deb 20 January 1992 vol 202 cc11-2W
Mr. Gwilym Jones

To ask the Chancellor of the Exchequer what would be the cost in 1992–93 of(a) cutting the basic rate of income tax by 1 per cent., (b) increasing the maximum for mortgage interest relief by £5,000, (c) increasing each personal and marriage allowance, including age-related allowance by £1,000 and (d) removing value added tax from granny flats.

Mr. Maude

The information is as follows:

  1. (a) Reducing the basic rate of income tax to 24p would cost about £1.95 billion.
  2. (b) Increasing the ceiling on mortgage interest tax relief by £5,000 would cost about £300 million excluding the effect of behavioural changes following such an increase.
  3. (c) Increasing all personal allowances by £1,000 would cost about £7 billion.
  4. (d) Information on which to make an estimate is not available.