§ Sir Russell Johnstonasked the Secretary of State for Scotland if he will estimate how the current product of domestic rates in Scotland and in each of the regions in Scotland might be raised through community charge or local income tax with and without resource equalisation in the cases of (a) a single person on 75 per cent. and 100 per cent. of an average manual workers wage, (b) a married man on 75 per cent. and 100 per cent. of an average manual worker's wage, whose wife's earnings are an average for women in full-time employment, (c) a married man with earnings as in case (a) whose wife's earnings are the average for women in part-time employment, (d) a married man with earnings as in case (a) whose wife has no income, (e) a married couple, as 279W in case (d) living with a son or daughter over 8 years of age, whose income is the average for the 18 to 25 year age group in Scotland and (f) a married couple as in case (d) living with an unemployed son or daughter between 18 and 25 years of age, indicating how these calculations were made.
(a) A single person on 75 per cent, and 100 per cent, of average earnings for a full-time male adult manual worker in Scotland Area Community charges Equalised local income tax Unequalised local income tax (£) 75 per cent. (£) 100 per cent. (£) 75 per cent. (£) 100 per cent. (£) Borders 158 181 272 130 196 Central 187 214 323 269 405 Dumfries and Galloway 155 176 266 164 247 Fife 210 244 367 181 272 Grampian 157 181 272 130 196 Highland 153 176 266 134 203 Lothian 225 260 393 315 475 Strathclyde 229 265 399 277 418 Tayside 194 223 336 273 412 Scotland 207 239 361 235 355
(b) A married man with earnings as in case (a), whose wife's earnings are the Scottish average for adult women in full-time employment Area Community charges Equalised local income tax Unequalised local income tax (£) 75 per cent. (£) 100 per cent. (£) 75 per cent. (£) 100 per cent. (£) Borders 316 298 390 215 281 Central 374 354 463 444 581 Dumfries and Galloway 310 291 381 270 354 Fife 420 402 526 298 390 Grampian 314 298 390 215 281 Highland 306 291 381 222 290 Lothian 450 430 562 520 680 Strathclyde 458 437 571 458 599 Tayside 388 368 481 451 590 Scotland 414 395 517 388 508
(c) A married man with earnings as in case (a) whose wife's earnings are the average for adult women in part-time employment Area Community charges Equalised local income tax Unequalised local income tax (£) 75 per cent. (£) 100 per cent. (£) 75 per cent. (£) 100 per cent. (£) Borders 316 147 238 106 172 Central 374 174 283 218 355 Dumfries and Galloway 310 143 233 133 216 Fife 420 198 322 147 238 Grampian 314 147 238 106 172 Highland 306 143 233 109 177 Lothian 150 211 344 256 416 Strathclyde 458 215 349 225 366 Tayside 388 181 294 222 360 Scotland 414 194 316 191 311 280W
(d) A married man with earnings as in case (a) whose wife has no income. Area Community charges Equalised local income tax Unequalised local income tax £ 75 per cent. £ 100 per cent. £ 75 per cent. £ 100 per cent. £ Borders 316 127 219 91 158 Central 374 150 259 189 325 Dumfries and Galloway 310 124 213 115 198 Fife 420 171 295 127 219 Grampian 314 127 219 91 158 Highland 306 124 213 94 163
§ Mr. AncramThe estimated average local tax bills under the community charge system and under a local income tax system and without resource equalisation needed to replace domestic rates in 1985–86, are given for the specific cases requested.
281W
Area Community charges Equalised local income tax Unequalised local income tax £ 75 per cent. £ 100 per cent. £ 75 per cent. £ 100 per cent. £ Lothian 450 183 315 221 381 Strathclyde 458 186 320 195 335 Tayside 388 156 269 192 330 Scotland 414 168 290 165 285
(e) A married couple as in (d) living with a son or daughter over 18 years of age whose income is the average for full-time workers in the 18 to 24 year age group Area Community charges Equalised local income tax Unequalised local income tax £ 75 per cent. £ 100 per cent. £ 75 per cent. £ 100 per cent. £ Borders 474 292 384 211 277 Central 561 346 455 435 571 Dumfries and Galloway 465 285 375 265 348 Fife 630 394 518 292 384 Grampian 471 292 384 211 277 Highland 459 285 375 217 286 Lothian 675 421 553 509 669 Strathclyde 687 428 562 448 589 Tayside 582 360 473 441 580 Scotland 621 387 509 380 500
(f) A married couple as in case (d) living with an unemployed son or daughter between 18 and 24 years of age. Area Community charges (rebated) Equalised local income lax Unequalised local income tax £ 75 per cent. £ 100 per cent. £ 75 per cent. £ 100 per cent. £ Borders 429 127 219 91 158 Central 488 150 259 189 325 Dumfries and Galloway 422 124 213 115 198 Fife 543 171 295 127 219 Grampian 430 127 219 91 158 Highland 419 124 213 94 163 Lothian 574 183 315 221 381 Strathclyde 584 186 320 195 335 Tayside 507 156 269 192 330 Scotland 536 168 290 165 285 Notes:
(1) The average community charges for 1985–86 used in the tables were published in the Official Report on 20 February 1986.
(2) The underlying local income tax rates (with resource equalisation) have been estimated on the assumption that some form of resource equalisation would make the yield of 1p in the pound the same per adult in all areas.
(3) Published information on taxable resources in local authority areas is only available up to 1982–83. The sample size is small and the regional pattern shows considerable variation from year to year. Estimates of local income tax rates without resource equalisation are therefore subject to some uncertainty. Those in the table have been produced by applying the pattern of unequalised tax rates calculated for 1982–83 to 1985–86 average earnings.
(4) Estimates of average gross earnings have been taken from the 1985 "New Earnings Survey". The average figures for Scotland have been used in each case with the exception of average earnings for the 18 to 24 year age group, where only Great Britain figures were readily available.
(5) In applying local income tax rates to cases (a) to (f) it is assumed that earnings are the only sources of income and that only personal tax allowances apply.
(6) In case (f) it has been assumed that the unemployed son or daughter will be in receipt of unemployment benefit.