§ Mr. Michael SpicerTo ask the Chancellor of the Exchequer if he will revise the elements of the retail prices index to eliminate the effect of movement in mortgage rates.
§ Mr. Norman LamontI have now decided to ask the Retail Prices Index Advisory Committee to review the treatment of owner-occupiers' housing costs in the retail prices index. The terms of reference for this committee are being amended accordingly and will now be as follows
To advise the Chancellor of the Exchequer on the implication for the RPI of the abolition of the community charge and its replacement by the council tax; to review progress on implementing the Committee's previous recommendation on the inclusion in the index of expenditure on holidays; and to review the present treatment in the index of owner-occupiers' housing costs and new cars. In framing its recommendations the Committee is asked to take account of the practices in other European Community countries.