§ Mr. GogginsTo ask the Chancellor of the Exchequer what estimate he has made of the cost of mortgage interest tax relief in(a) 1997ߝ98, (b) 1998ߝ99 and (c) 1999ߝ2000. [1642]
§ Dawn Primarolo[holding answer 2 June 1997]: The estimated total cost of mortgage interest tax relief in 1997ߝ98 is £2.4 billion. The estimate is based on the assumption, by convention, of no change from the latest available estimated average building society interest rate of 6.66 per cent. The cost of the relief in 1998ߝ99 and 1999ߝ2000 would depend on future interest rates, the future distribution of the number and value of outstanding mortgages.