§ Mr. HigginsTo ask the Chancellor of the Exchequer if he will estimate the increase in the standard rate of income tax which would be necessary to yield the same revenue as his estimate of the yield of the community charge in 1990–91 and 1991–92.
§ Mr. Norman LamontFor 1990–91 local authorities community charge yield (gross) is budgeted at £14 billion (GB). For 1991–92 budgeted figures are not yet available. However, if all authorities spend in line with standard spending assessments the estimated gross yield of the community charge would be £14.5 billion (GB).
On this basis, the estimated yield net of community charge benefit, transitional relief and the community charge reduction scheme is £11.4 billion in 1990–91 arid £10.6 billion in 1991–92.
To yield the same net revenue the standard rate of income tax would need to be increased by around 71/2p for 1990–91 and around 51/2p for 1991–92.