Council Tax (Hansard, 11 November 1992)

§ 9. Mr. Leighton
To ask the Secretary of State for the Environment what the total cost will be of transitional relief for the operation of the first year of the council tax in 1993–94.

§ The Parliamentary Under-Secretary of State for the Environment (Mr. Robin Squire)
It is too early to say. We shall be announcing our proposals for next year's revenue support grant settlement shortly, including details of the proposals for transitional relief.

§ Mr. Leighton
Bearing in mind the fact that the Secretary of State for the Environment was the Minister who introduced the poll tax, will the introduction of the council tax be as big as fiasco as that or a bigger one?

§ Mr. Squire
The House might determine that that was not a question which gained its full impact on delivery. The council tax will be a fair tax. Apart from the banding, which has been well stressed, many people will receive deserved discounts. Above all else, there will be rebates of up to 100 per cent. for those who are in most need. The Government are certain that the council tax will be welcomed by most people as an improvement.

§ Mr. Nigel Evans
Does my hon. Friend agree with me, as someone who was perhaps one of the biggest poll tax losers in this country, with the Ribble Valley by-election—which certainly cost me the seat at the time—that the vast majority of people in my constituency would welcome the fact that the poll tax is being abolished and that the council tax will take its place? We shall get greater discounts for people on low incomes, students will have 100 per cent. rebates and people living alone will benefit because, for the first time ever with a household tax, they will gain with a 25 per cent. discount.

§ Mr. Squire
My hon. Friend makes his points admirably and I fully endorse them.

§ Mr. Vaz
Is it not the case that, whatever transitional relief the Secretary of State has been able to get out of the Treasury, it will not cover up the basic and profound unfairness of the council tax? Will the Minister confirm that millions on below-average incomes will not be eligible for any council tax benefit? They will be forced to pay a proportionately much greater amount of their income than the best-off, whose tax has been capped at twice the average. Does the Minister agree that, rather than the council tax becoming a fiasco, it will be a shambles? What is he prepared to do about that?

§ Mr. Squire
May I begin by welcoming the hon. Gentleman to the Front Bench and, as is the usual custom, wishing him a long sojourn there. On his central question, I completely reject his charges. The ability of all those on income support to receive 100 per cent. rebate is an important part of the new system. It is buttressed, as I said in answer to the hon. Member for Newham, North-East (Mr. Leighton), by a rebate system that will reach and assist many people, including those who are less well off.