HC Deb 28 March 1991 vol 188 cc539-40W
Mr. Ronnie Campbell

To ask the Secretary of State for the Environment what has been the year on year increase in standard spending assessment of(a) Westminster, (b) Blyth Valley, (c) North Tyneside, (d) Wansbeck, (e) Castle Morpeth and (f) Northumberland county council.

Mr. Key

The percentage increases in standard spending assessments between 1990–91 and 1991–92 are as follows:(a) 22.1, (b) 29.6, (c) 19.5, (d) 29.3, (e) 27.2, and (f) 18.9.

Mr. Lawson

To ask the Secretary of State for the Environment if he will give the proportion of total local government spending financed by(a) the community charge, (b) the national non-domestic rate, (c) government grants and (d) rents and local charges.

Mr. Heseltine

[holding answer 22 March 1991]: The proportion of budgeted expenditure in 1990–91 financed by the community charge net of community charge benefit and transitional relief is 28 per cent., by non-domestic rates is 29 per cent., and Government grants is 42 per cent., where Government grants comprise revenue support grant, special grants, specific grants in aggregate external finance, community charge benefits and transitional relief grant.

Some 55 per cent. of housing revenue account expenditure is financed by central Government subsidies (including rent rebates), 40 per cent. from rents borne by tenants (excluding rent rebates), with the remainder from other income and balances.

Mr. Spearing

To ask the Secretary of State for the Environment if he will state the total sum(a) he expects to be raised in England from the community charge in the year 1991–92 and (b) raised by domestic rates in the year 1989–90, together with the percentage increase or decrease in the rates required to raise the sums raised in (a) above.

Mr. Key

[holding answer 27 March 1991]: Local authorities have budgeted to raise £13.5 billion from community charges in 1991–92, but this is expected to be reduced to £8.7 billion by the proposed community charge grant. After taking account of the community charge reduction scheme and community charge benefits, community charge income is likely to be about £6.4 billion.

Domestic rate yield in 1989–90 is provisionally estimated at £9.8 billion; net of domestic rate rebates the yield is £8.6 billion.

The decrease in rate yield required to raise £8.7 billion is 11.5 per cent. After taking into account the community charge reduction scheme and community charge benefits/ rates rebates, the decrease is 25.0 per cent.

Mr. Spearing

To ask the Secretary of State for the Environment if he will state for England the percentage of local government net expenditure contributed by(a) central Government, (b) industrial and commercial rates and (c) domestic rates in the year 1978–79, and of (i) central Government, (ii) uniform business rate and (iii) the estimated community charge income for the year 1991–92.

Mr. Key

[holding answer 27 March 1991]: In 1978–79 central Government contributed 58 per cent. of net expenditure through rate support grant and rate rebate grants. Non-domestic rates contributed 24 per cent. (of which commerce and industrial rates accounted for 20 per cent.), and domestic rates (net of domestic rate rebates) accounted for 17 per cent.

In 1991–92 central Government grants, including revenue support grant, community charge grant, area protection and inner London education grants, and community charge reduction scheme grant, are expected to account for 47 per cent. of net revenue expenditure (equivalent to the sum of standard spending assessments); receipts from the non-domestic rates pool account for a further 34 per cent.; and community charges (net of community charge benefit and CCRS) for 18 per cent.

Figures do not add to 100 per cent. because some expenditure is financed from reserves.