Council Tax (Hansard, 28 April 1993)

§ 11. Mr. Salmond
To ask the Secretary of State for the Environment what is his latest estimate of the average level of the council tax; and if he will make a statement.

§ Mr. Redwood
The average headline council tax for two or more adults in a band C dwelling in England is £506.

§ Mr. Salmond
The Minister will be aware of major demonstrations against council tax levels which took place in the Western Isles. Is he aware that even after the cuts in council tax that followed, which will clearly have a significant implication for services in the islands, someone in a £40,000 house in the Western Isles will still pay £110 more than someone in the Prime Minister's constituency of Huntingdon? Does the Minister think that the surcharge that the Western Isles are paying over Huntingdon is reasonable, equitable, just and defensible, or does he think that it means that Huntingdon is getting too much public support and that the Western Isles is getting too little?

§ Mr. Redwood
The hon. Gentleman is badly misinformed about the relative levels of grant support. Scottish authorities receive £1,013 per head in external support—47 per cent. more than English local authorities, which receive £689 a head. Even allowing for some difference in functions, that is a big increase over the English figure. The hon. Gentleman should take up his argument in Scottish Question Time, and with those who are trying to lead the Western Isles council. The electors in the Western Isles knew where to lay the blame. They knew that it lay with the council, which is beginning to respond.

§ Mr. Clappison
Will the Minister confirm that not only is band C council tax £107 more under Labour authorities than it is under Conservative authorities, but that the 10 highest council taxes have all been set by Labour authorities? Does he agree that this is no mere coincidence, but compelling evidence that Labour authorities are profligate spenders and that value for money is an alien concept to them?

§ Mr. Redwood
My hon. Friend is right. All 10 of the highest English council tax rates have been set by Labour local authorities. Practically every one of those authorities not only gets more grant than the average but, in most cases, gets massively more than the average because the Government recognise some special factors. However, the councillors are not able to use all the extra money to the benefit of their local taxpayers and provide good-quality services.

§ Mr. Milburn
Is the Minister aware that of the 1,800 inquiries received by Darlington council about the disabled persons reduction scheme, 1,500 came from people placed in band A? Does he recognise that his refusal to extend the scheme to those living in band A properties short changes those who are in most need of assistance to pay their bills? Will he consider introducing a new council 955 tax band of A minus to assist my constituents and those of other hon. Members who, through no fault of their own, are losing out?

§ Mr. Redwood
The idea of disablement relief on houses in different council tax banks is that it should come into operation where a disabled person has had to spend extra on improving the house to cope with the disability. For those on low incomes, who are already rated in the lowest band, there are many other ways in which they can get help, such as through disability benefit and council tax benefit. We wish to ensure that people on low incomes are not penalised, and there is a generous scheme to do that. If the issue is whether somebody has been put into a higher band by virtue of the disability, that element in help for disabled people can be given only to those in the higher band. Like Opposition Members, I wish to help the disabled. That is why we have a series of measures to help them, geared to income and house values.