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Mr. Mudd
To ask the Secretary of State for Transport what was the cost to his Department's road improvement programme of the increase in VAT from 15 per cent. to 17.5 per cent.
Mr. Chope
It is estimated that, in 1991–92 total expenditure on VAT of £212 million will be incurred on section A (national roads system: capital—new construction and renewal) of the national roads, England, vote. This is expected to be offset by recoveries of £79 million.