§ Mr. ShawTo ask the Chancellor of the Exchequer, pursuant to the answer of 21 July 1998,Official Report, column 463, from the Secretary of State for the Environment, Transport and the Regions, if he will estimate the loss of revenue incurred by reducing VAT on the refurbishment of 415,000 dwellings to 5 per cent. [52157]
§ Mr. Geoffrey RobinsonThe average cost of bringing an empty dwelling into good order is £6,500. This figure was given to my hon. Friend in the answer of the 21 July 1998,Official Report, column 463, by the Secretary of State for the Environment, Transport and the Regions. The revenue cost of reducing the rate of VAT from 17.5 per cent. to 5 per cent. on refurbishment costing £6,500 on each of 415,000 dwellings would be approximately £300 million.