Local Income Tax (Hansard, 14 January 1988)

HC Deb 14 January 1988 vol 125 cc357-8W 357W

§ Mr. Tony Banks
To ask the Secretary of State for the Envoronment (1) if, further to his reply to the hon. Member for Pembroke (Mr. Bennett) of 16 November 1987,Official Report, columns 183–185, he will publish in the Official Report (a) the number of income tax payers he has assumed were resident in each rating authority, (b) the average level of income he assumed each income tax payer was earning and (c) the total number of income tax payers in England, the average level of income they were earning and the source of his information;
(2) if, further to his answer to the hon. Member for Pembroke (Mr. Bennett) of 16 November 1987, Official Report, columns 183–185, he will give the exact relationship he assumed between changes in expenditure by a local authority and changes in grant when producing exemplifications of local income tax rates for each authority.

§ Mr. Howard
[holding answer 13 January 1988]: The assumption about the relationship between expenditure and grant was described in the note covering the exemplifications placed in the Library on 12 November. Full equalisation of taxable resources was assumed. To calculate exemplifications on this basis it is unnecessary to make assumptions about the number of income tax payers or the average income, either for England as a whole or for each district and borough.

§ Mr. Tony Banks
To ask the Secretary of State for the Environment, further to his answer to the hon. Member for Pembroke (Mr. Bennett) of 16 November 1987,Official Report, columns 183–85, on local income tax, he will publish the figures he assumed for England for (a) the total amount of Government grant, (b) what part of Government grant was equivalent to the total paid in rate rebates and (c) the level of the national non-domestic rate in pence to two decimal places.
358W

§ Mr. Howard
[holding answer 13 January 1988]: A number of assumptions were made about such matters as the total amount to be raised from LIT, rebates, balances and the yield of an extra 1p income tax. I refer the hon. Member to the answer I gave on 23 November to the hon. Member for Southwark and Bermondsey (Mr. Hughes). It was unnecessary to make any additional assumptions about the total amount of Government grant The Government's assumption about the level of the NNDR has been that, on the basis of actual poundages in 1987–88, it would be 224.11p.