HC Deb 08 April 1982 vol 21 cc468-9W
Mr. Dewar

asked the Secretary of State for the Environment if he will publish in the Official Report a table showing the basis, in both absolute values and per capita terms, of the calculation shown in Cmnd. 8449, alternatives to rates, annex C, paragraph 14, of the varying 1981–82 "revenue-neutral" tax rate for alternative local taxes indicating (a) gross expenditure, (b) charges and other income, (c) grant-borne expenditure, (d) rate-borne expenditure and (e) expenditure borne by domestic ratepayers.

Mr. King

The 1981–82 alternative local tax-rates in annex C of Cmnd. 8449 were intended to illustrate the approximate local tax-rates needed to raise the same revenue as domestic rates in each of England, Scotland

Yield of domestic rates and alternative taxes Great Britain 1981–82
Domestic rate poundage 1981–82 *Estimated yield of domestic rates Estimated yield of 1 per cent. increase in income tax Rate of local income tax to nearest VAT †Estimated yield of increase in VAT Rate of local sales tax to nearest½ per cent. Mid-1980 adult population Rate of poll tax to nearest £pa
England 119p £4,120m £801m 5p £4,120m 7 per cent. 34.444m £120pa
Wales 125p £160m £36m 4½P £160m 5½ percent 2.060m £77pa
Scotland 106p £440m £78m 5½p £440m 7 per cent. 3.752m £117pa
London & the South-East 118p 5p 7 per cent. £118pa
Rest of England 121p 5p 7 per cent. £121pa


* A revised estimate of domestic rate yield, of £4.8 billion for Great Britain, was made after these tax rate calculations were carried out.

† The increase was calculated from a special estimate of the yield of VAT over the relevant range of VAT rates allowing for some erosion of the tax base as VAT rates increase.