§ Mr. Higgins
asked the Secretary of State for Employment what would be the effect on the retail price index if domestic rates were abolished.
§ Mr. Waddington
Domestic rates (net of rebates) account for about 2.8 per cent. of household expenditure in the United Kingdom (3.6 per cent. if water, sewerage and environmental charges are included). The effect on the retail price index of their abolition would depend upon the extent and nature of any alternative measures to make good the lost revenue.