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Mr. John Smith
asked the Secretary of State for Scotland if he will estimate the extra cost to the National Health Service in Scotland of the increase in value added tax from 8 per cent. to 15 per cent. in a full year.
Mr. Younger
It is estimated that the increase in VAT will add about £8 million—at November 1978 prices—or 0·9 per cent. to the cost of the National Health Service in Scotland in a full year.