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Building Society Mortgages

Volume 982: debated on Thursday 3 April 1980

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asked the Chancellor of the Exchequer if he will update the information on building society mortgages given to the hon. Member for Melton (Mr. Latham)—Official Report, 3 December 1976, column 290.

The estimated tax paid in respect of building society interest received by taxpayers is as follows:he will publish the findings in the

Official Report.

The effect on interest rates of a given change in the money supply depends on a variety of factors and a series of complex economic relationships.

asked the Chancellor of the Exchequer whether his Department has made any estimate of the effect of changes in the money supply on the velocity of circulation; and if so, whether he will publish the findings in the Official Report.

The effect on the velocity of circulation of a given change in the money supply depends upon a variety of factors and a series of complex economic relationships. However, in the long run, a change in the stock of money is unlikely to have a significant effect on velocity.

asked the Chancellor of the Exchequer what effect on the level of economic activity the successful achievement of the target increase in the money supply will have, if the rate of price inflation is greater.

For a given monetary target, the effect on activity of a higher rate of price inflation will depend on a variety of factors. But in general a high rate of inflation will have an adverse effect on activity.