asked the Chancellor of the Exchequer the estimated total of Income Tax allowances in respect of mortgage payments in the last financial year; and the estimated total for the current financial year.
The estimated cost of tax relief on mortgage interest payments on domestic property in 1964–65 was £115 million and for 1965–66 is £130 million.
Is my right hon. Friend aware that this sum compares very much with the amount paid out in Exchequer subsidies in respect of housing? Will he give more publicity to this to combat some of the propaganda from the other side?
Will the right hon. Gentleman say how much of the increase is due to the increase in mortgage interest rates this year and this week's announcement that in the first nine months of the year the cost of houses went up by a greater amount than at any other time since statistics were first kept?
I cannot give the split of the figures, but the answer is that the increase is due partly to the estimated rise in total mortgage interest and partly to the rise in the standard rate last year from 7s. 9d. to 8s. 3d.