§ Mr. SpearingTo ask the Chancellor of the Exchequer if he will list for each relevant tax year the revenue he has derived from VAT relating to(a) building repairs, (b) non-domestic building and (c) civil engineering projects, with any convenient breakdown into category; and what is his estimate in each case of the consequential increase in price to the immediate client or consumer, and the approximate and total effect of such charges on (i) the retail price index and (ii) the rate of inflation.
§ Sir John CopeWhen the tax regime for construction, buildings and land was revised on 1 April 1989 the increase in revenue was calculated to be £310 million in 1989–90 and £400 million in 1990–91. Since then no further revenue calculations have been made. The 201W assumption made at the time was that changes in VAT would have been fully passed on to clients. Since the clients affected by the tax changes were businesses the direct effect on the RPI and therefore on the rate of inflation would have been negligible and in any case is not possible to calculate.