HC Deb 02 May 1990 vol 171 cc1029-30
14. Mr. Ian Bruce

To ask the Secretary of State for Scotland what proportion of local government expenditure will be raised from the community charge payer, the uniform business rate payer, and Government grant; and what were the Government's original estimates if councils had kept to Government spending guidelines.

Lord James Douglas-Hamilton

On the basis of local authorities' budget estimates, 22 per cent. of their expenditure in 1990–91 will be met by community charge payers compared to a Government assumption of 20 per cent., 23.4 per cent. by business rate payers compared to 24 per cent. and 54.6 per cent. from Government grant compared to 56 per cent. Local authority community charge payers should have to contribute on average only 20 per cent. They are contributing 22 per cent. on account of extra local authority spending.

Mr. Bruce

Does my hon. Friend agree that in the first year of the community charge in Scotland many local authorities made greater provision for bad debts and many other expenses that might have been incurred and increased the community charge accordingly? Is he aware that in the second year they have brought down their expenditure more in line with Government guidelines? Does he further agree that the non-payment campaign in Scotland is the one thing that ensures that community charge payers will have too pay to much this year?

Lord James Douglas-Hamilton

Obviously someone will have to pay the community charge eventually. The effect of non-payment campaigns will be almost certainly to increase the community charge substantially for other charge payers. My hon. Friend is correct that this year there has been considerably more economy. Some 21 local authorities have either reduced their charges or held them at the same level while another 13 have kept their increases below the rate of inflation. Accordingly, there is increasing evidence that in the second year of the new system in Scotland local accountability is taking effect. In contrast to that, the proportion of the budget of Edinburgh district council that is raised from the community charge is over 40 per cent.—probably the highest in Scotland.