§ Mr. Chris Smith
To ask the Chancellor of the Exchequer why he has established the rate of interest on unpaid income tax, in Statutory Instrument No. 1621, at 10.75 per cent. per annum from 6 October.
§ Mr. Norman Lamont
[holding answer 25 October 1988]: The rate change follows recent movements in bank base rates. It is set by reference to commercial rates and reduced to take account of not being allowable for tax purposes.