§ Mr. LilleyTo ask the Chancellor of the Exchequer if he will estimate the impact of the tax changes announced in the July 1997 Budget on the annual disposable income of(a) an individual on average earnings and (b) a married couple on average earnings with a £50,000 mortgage. [29195]
§ Dawn Primarolo[holding answer 12 February 1998]: The only Budget 97 measure likely to have a direct effect on the disposable income of individuals aged under 60 is the reduction from 6 April 1998 in the rate at which mortgage interest relief is given from 15 per cent. to 10 per cent. Relief is limited to the interest on loans of £30,000. As a result an individual and a married couple on average earnings and a £50,000 mortgage will receive 526W less relief. This assumes, by convention, no change to the latest available estimated average building society interest rate.