Council Tax (Hansard, 10 May 1991)

§ Mr. Austin Mitchell
To ask the Secretary of State for the Environment if he will publish a table showing for each of the seven bands of council tax (i) the average value of the dwellings together with his estimate of (ii) the rateable value and (iii) the average rate required to raise £6.8 billion and (iv) the rate yield in each case as against the tax yield from his proposal.

§ Mr. Key
Since the bands we propose for the council tax be the same in each area, the average value in each band will be broadly the same in each area. If capital values were taxed directly, a tax rate of under 0.5 per pound of value would be sufficient to raise £6.8 billion in England. Estimates of the rateable value of properties in each of the seven council tax bands are not available.

§ Mr. Austin Mitchell
To ask the Secretary of State for the Environment further to his answer of 29 April,Official Report, column 13 about the size of increase in council tax required for each percentage point of increase in spending; what is the level of spending above standard spending assessment for (a) Cleethorpes and (b) Grimsby; and if he will make a statement.

§ Mr. Key
Cleethorpes borough council set its demand on the collection fund for 1991–92 at £7.7 million, which is 31.0 per cent. or £34 per adult above the standard spending assessment. Great Grimsby borough council set its demand on the collection fund for 1991–92 at £11.8 million, which is 30.9 per cent. or £42 per adult above the standard spending assessment.

§ Mr. Austin Mitchell
To ask the Secretary of State for the Environment whether the assumed yield in paragraph 5 of his illustrative tables for the council tax is gross or net of rebates; and what is the gross yield as a percentage of the capital value overall and by decile groups of properties in terms of value.
623W

§ Mr. Key
The assumed yield is gross of rebates. The gross yield as a percentage of capital value overall is less than 0.5p in the pound.
Information by decile groups of properties in terms of value is not available.

§ Mr. Beith
To ask the Secretary of State for the Environment what he estimates will be the effect of the reduced income from second homes as a result of the change from double standard charge to 50 per cent. council tax in the borough of Berwick-upon-Tweed; and whether this figure was taken into account in the published projection of council tax for the borough.

§ Mr. Key
As explained in the consultation paper "A New Tax for Local Government", we propose that grant be distributed so that authorities in each area can finance spending at a standard level by levying standard taxable amounts. This will allow for the incidence of homes which are no one's sole or main residence. The illustrative council tax bills published on 23 April made allowance for the incidence of properties presently subject to the standard community charge.

§ Mr. Austin Mitchell
To ask the Secretary of State for the Environment what information he has on how the percentage yield from the council tax in each of his seven tax bands compares with the rate of wealth tax on houses in Germany.

§ Mr. Key
[holding answer 7 May 1991]: The proposed council tax and German wealth tax are not directly comparable systems of local taxation.