asked the Chancellor of the Exchequer what would be the increase in revenue at outturn prices which would accrue in the current year if tax relief on owner-occupiers' mortgage interest and interest on other loans for house purchase or improvement, were withdrawn; and how much of this additional revenue would be raised from those who would then be paying tax at the higher rates; what are the equivalent figures for the years 1975–76, 1976–77 and 1977–78; and what are the equivalent figures for these years and the current year expressed at 1977 survey prices.
pursuant to the reply [Official Report, 2nd August 1978], gave the following information:The estimated increase in revenue for 1978–79 would be about £1,080 million. Total higher rate tax would increase by about £320 million.For earlier years the estimated increase in revenue would have been as follows:
|GROSS DOMESTIC PRODUCT AT FACTOR COST PER HEAD OF TOTAL POPULATION|
|1976 Based on exchange rates||Based on purchasing power parities||1977(1)Based on exchange rates|
|(1) Not adjusted to standardised definitions|
|(2) GNP at factor cost|
At 1977–78 Prices
I regret that in the time available it has not been possible to provide the full information requested. I shall write to my hon. Friend.