HC Deb 22 October 1986 vol 102 cc875-81W
Mr. Foulkes

asked the Secretary of State for the Environment (1) what is his estimate of the number of tax units gaining and losing in the first year of transition from domestic rates to the community charge as set out in figure J5 and the number of tax units gaining and losing with full

Table 1
First year of transition from domestic rates to the community charge with present social security arrangements throughout
(Great Britain: thousand households)
Single pensioner Other single adult Two adult Three+ adults All households
Pounds per week
Losers
10+ — — — — —
5–10 — — — 1 —
2–5 — — — 206 206
1–2 — — 504 810 1,315
0–1 198 357 5,318 1,182 7,053
Total losers 198 357 5,821 2,199 8,574
Giners
0–1 1,061 1,019 4,372 425 6,878

replacement of domestic rates by the community charge as set out in figure J8 of the Green Paper "Paying for Local Government" when these numbers are recalculated on the basis of existing social security arrangements;

(2) what is his estimate of the number of households gaining and losing in the first year of transition from domestic rates to the community charge as set out in figure J4 and the number of households gaining and losing with full replacement of domestic rates by the community charge as set out in figure J7 of the Green Paper "Paying for Local Government" when these numbers are recalculated on the basis of existing social security arrangements.

Mr. Chope

The recalculated estimates of the numbers of households and tax units in Great Britain gaining and losing from the introduction of the community charge, assuming existing social security arrangements, are set out in the following tablesTable 1: number of households gaining and losing in the first year of transition from domestic rates to the community charge (comparable to figure J4 in the Green Paper Cmnd. 9714 "Paying for Local Government"); Table 2: as for table 1 but for tax units (comparable to figure J5); Table 3: number of households gaining and losing with the full replacement of domestic rates by the community charge (comparable to figure J7); Table 4: as for table 3 but for tax units (comparable to figure J8). (Note: in Annex J of the Green Paper, the numbers in figures J4, J5, J7, and J8 were rounded to the nearest 25,000. The numbers in these tables have not been rounded but should not be taken to imply a higher standard of accuracy).

The tables incorporate the assumptions set out in paras. J7-J11 of "Paying for Local Government" except that under both the present rating system and with the community charge it has been assumed that the present social security arrangements are in existence. The benefit rates used were those as at November 1985, deflated to a 1984–85 price level.

The tables illustrate what the impact of replacing domestic rates by the community charge might have been in a past year — 1984–85 — under the existing social security arrangements. In future years, both the pattern of local authority spending and household characteristics will have changed so that the gains and losses may be rather different from those illustrated here. In addition, the proposals contained in "Reform of Social Security" (Cmnd. 9691) will have been implemented. The tables in annex J are therefore a fairer reflection of the likely impact of our proposals.

Single pensioner Other single adult Two adults Three+adults All households
1–2 161 294 878 86 1,420
2–5 58 46 279 29 414
5–10 1 1 8 1 10
10+ — — — — —
Total gainers 1,280 1,361 5,537 541 8,722
No change 1,328 604 1,330 45 3,309
Percentage of net income
Losers
10+ — — — — —
5–10 — — — — —
2–5 — — — — —
1–2 3 7 132 62 204
0–1 195 349 5,689 2,137 8,370
Total losers 198 357 5,821 2,198 8,574
Gainers
0–1 974 1,141 5,350 523 7,989
1–2 274 195 181 18 670
2–5 32 24 5 1 62
5–10 — — — — —
10+ — — — — —
Total gainers 1,280 1,361 5,537 542 8,720
No change 1,328 604 1,330 45 3,309

Table 2
First year of transition from domestic rates to the community charge—present social security arrangements throughout—
(Great Britain: thousand tax units)
Single Adults Other Couples
Single pensioner One parent family Other single adult Pensioner couple no children 1 child 2 children 3+ children All tax units
Pounds per week
Losers
10+ — — — — — — — — —
5–10 — — — — — — — — —
2–5 — — — — — — — — —
1–2 — — — 87 354 153 98 36 728
0–1 509 51 3,540 1,034 2,272 1,066 1,105 472 10,049
Total losers 509 51 3,540 1,121 2,625 1,219 1,204 508 10,778
Gainers
0–1 1,250 291 1,278 567 1,707 904 1,255 437 7,689
1–2 176 94 358 107 319 190 288 92 1,624
2–5 60 12 52 26 108 62 83 42 445
5–10 1 — 2 1 2 1 1 3 11
10+ — — — — — — — — —
Total gainers 1,487 396 1,691 702 2,136 1,158 1,627 573 9,769
No change 1,886 446 2,249 485 262 186 226 199 5,941
Percentage of net income
Losers
10+ — — — — — — — — —
5–10 — — — — — — — — —
2–5 7 — 1 6 7 1 — — 24
1–2 72 2 1,550 60 113 43 15 1 1,857
0–1 429 49 1,989 1,055 2,506 1,174 1,189 507 8,900
Total losers 509 51 3,540 1,121 2,625 1,219 1,204 508 10,781
Gainers
0–1 1,131 323 1,316 655 2,009 1,102 1,574 551 8,662
1–2 314 62 289 45 110 48 49 20 938
2–5 42 11 81 1 16 7 4 2 164
5–10 — — 4 — — — — — 3
10+ — — 1 — 1 — — — 3

Single Adults Other Couples
Single pensioner One parent family Other single adult Pensioner couple no children 1 child 2 children 3+children All lax units
Total gainers 1,487 396 1,691 702 2,136 1,158 1,627 573 9,769
No change 1,886 446 2,249 485 262 186 226 199 5,941

Table 3
Full replacement of domestic rates by the community charge present social security arrangements throughout
(Great Britain: thousand households)
Single pensioner Other single adult Two adults Three+adults All households
Pounds per week
Losers
10+ — — 3 48 49
5–10 — — 79 321 400
2–5 3 61 1,195 1,001 2,260
1–2 25 97 1,604 415 2,141
0–1 165 200 2,909 347 3,622
Total losers 193 357 5,789 2,133 8,473
Gainers
0–1 540 350 2,474 241 3,606
1–2 344 378 1,289 162 2,174
2–5 324 520 1,432 158 2,436
5–10 68 104 349 43 565
10+ 13 13 58 7 93
Total gainers 1,290 1,365 5,603 611 8,873
No change 1,323 599 1,294 40 3,260
Percentage of net income
Losers
10+ — — — — —
5–10 — 1 8 1 10
2–5 15 63 481 331 890
1–2 41 106 1,479 827 2,452
0–1 136 187 3,823 974 5,120
Total losers 193 357 5,791 2,133 8,473
Gainers
0–1 330 344 3,701 415 4,791
1–2 340 466 1,349 130 2,285
2–5 530 493 537 65 1,626
5–10 89 57 16 1 165
10+ 2 4 — — 6
Total gainers 1,290 1,366 5,603 612 8,873
No change 1,323 599 1,294 40 3,260

Table 4
Full replacement of rates by the community charge—present social security arrangements throughout—
(Great Britain: thousand tax units)
Single Adults Other Couples
Single pensioner One parent family Other single adult Pensioner couple no children 1 child 2 children 3+children All tax units
Pounds per week
Losers
10+ — — — 1 3 — — — 5
5–10 1 — 60 13 70 25 12 5 185
2–5 66 9 1,763 177 717 313 243 92 3,380
1–2 86 9 831 309 777 346 322 127 2,805
0–1 400 31 1,047 625 1,034 514 624 282 4,556
Total losers 552 49 3,700 1,125 2,601 1,198 1,201 506 10,932

Single Adults Other Couples
Single pensioner One parent family Other single adult Pensioner couple no children 1 child 2 children 3+children All lax units
Gainers
0–1 648 92 529 355 959 485 640 232 3,939
1–2 389 114 404 137 497 280 399 126 2,347
2–5 380 158 632 175 556 325 465 159 2,850
5–10 72 35 119 34 135 80 114 48 638
10+ 14 4 13 5 25 13 18 12 103
Total gainers 1,502 402 1,697 706 2,171 1,183 1,636 578 9,877
No change 1,828 443 2,081 477 251 182 220 196 5,679
Percentage of net income
Losers
10+ — — 2 — — — — — 3
5–10 16 — 268 7 12 4 1 — 307
2–5 104 8 1,819 168 324 136 73 26 2,659
1–2 128 9 725 343 757 312 273 93 2,641
0–1 305 32 887 608 1,507 747 854 387 5,327
Total losers 553 48 3,701 1,125 2,601 1,199 1,201 506 10,937
Gainers
0–1 430 109 498 410 1,412 761 1,031 374 5,025
1–2 370 136 457 175 485 282 421 148 2,474
2–5 573 128 579 115 232 126 172 54 1,979
5–10 125 29 133 6 36 14 10 1 355
10+ 3 1 28 — 6 1 1 1 40
Total gainers 1,502 402 1,695 706 2,171 1,183 1,636 578 9,872
No change 1,828 443 2,081 477 251 182 220 196 5,679

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