(2) what estimate he has made of the annual savings to be made by (a) households and (b) businesses as a result of the reduction in value added tax to 15 per cent;
(3) what estimate he has made of the annual cost to the Exchequer arising from the reduction in the rate of value added tax on household expenditure.
The estimated cost of the temporary reduction in the standard rate of VAT was published in table B5 of the 2008 pre-Budget report. No calendar year-based estimates have been made.
The cost to the Exchequer represents an equivalent saving to taxpayers in general. It is estimated tentatively that (a) households account for around 70 per cent. of the total, (b) businesses account for around 15 per cent. and (c) other groups account for the remaining 15 per cent.