§ 13. . Miss LestorTo ask the Secretary of State for the Environment how his Department's present estimate for the average council tax for a two-adult household in a band D equivalent property differs from the estimate published by his Department in 1991.
§ Mr. RedwoodThe Department of the Environment has never forecast the likely levels of council tax.
§ Miss LestorMay I remind the Minister that estimates were made? In 1991, the estimate for band D was £400. In the rate support instruction, it was £494. The Financial Times today suggests that another £50 will be added to that. Is the Minister aware of the consternation that this is causing to lower and middle-income groups, who are worried about the way in which valuations have been determined? Is he aware also that many people think that he should return to the drawing board and start all over again?
§ Mr. RedwoodLocal government does not want us to start again. It wants the local tax that we propose and it wants an independent source of revenue; we are getting co-operation from many Labour and Liberal councils as a result—it is a pity that we are not getting co-operation from Opposition Members as well. The figures shown for illustration in 1991–92 were based on spending in 1991–92. Opposition Members seem to have forgotten—or they do not want to know—that local councils are spending more this year than last and that they will be spending more next year than this. We are not intending to forecast. There is independence and freedom within local government to decide what to spend and how much tax to impose within the limits set out by my right hon. and learned Friend. We intend to wait and see what councils do and to praise those that set modest taxes and provide high-quality services.
§ Sir Anthony DurantWhen my hon. Friend is considering capping, will he cap Labour-controlled Reading borough council, which seems to have set out to produce the highest rate of council tax of any area in Berkshire?
§ Mr. RedwoodI can reassure my hon. Friend. If any council exceeds the criteria limits that have been set out following proper consultation, it is likely that my right hon. and learned Friend will have to cap it to defend the 842 interests of local taxpayers and to make sure that that council, like most local authorities, delivers good services at a sensible price.
§ Mr. BarnesWhy is there only a threefold difference in payment between the low band of the council tax and the high band? Is that the nearest that the Government could get to the poll tax while pretending that there was a difference between the two taxes?
§ Mr. RedwoodNo. The council tax is a new tax with new principles. It has a strong property element, which Opposition Members have always said they wanted. There must be some limits on the amounts that those in more expensive houses have to pay. That issue was debated in Parliament and our proposals were approved by Parliament.