§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer what assumptions for inflation and asset growth he used in calculating the revenue effects of his Budget proposals for capital gains tax reform. [36040]
§ Mr. Geoffrey Robinson[holding answer 24 March 1998]: The assumptions for inflation and asset price growth used in calculating the revenue effects of the Budget proposals for Capital Gains Tax reform are consistent with the economic assumptions referred to on pages 108 and 109 of the march 1998 "Financial 202W Statement and Budget Report" (FSBR, HC620 published on 17 March 1998). Equity prices are assumed to grow at the same rate as gross domestic product (GDP) at current market prices—"money GDP".