§ Mr. Austin MitchellTo ask the Secretary of State for the Environment what factors underlay the change in the level of domestic rate rebates between 1987–88 and 1989–90; and what figure he has assumed in calculating rebates on the amount of council tax.
§ Mr. KeyMany factors underlay the changed levels of domestic rate rebates between 1987–88 and 1989–90. These include the reforms of the benefits system introduced in April 1988, the introduction of the community charge in Scotland from 1989, and the change in the actual level of rate bills resulting from spending decisions of local authorities.
Table 1 Local authority sales to sitting tenants (full ownership) 1989–90 Numbers of sales Discounted selling Market price Average discount Region houses flats price (houses + flats) houses flats (houses + flats) per cent. North (inc Cumbria) 12,600 600 10,200 21,600 19,200 51 Yorks/Humberside 19,100 800 11,100 22,300 19,000 50 East Midlands 9,700 800 15,700 32,200 26,900 50 East Anglia 2,300 500 23,900 51,600 45,600 53 London 7,900 19,200 25,800 67,900 55,500 57 South East 13,800 5,100 27,500 60,800 49,900 53 South West 7,500 1,700 21,900 47,900 40,100 53 West Midlands 16,600 1,700 15,000 31,500 24,600 51 North West 16,000 700 11,500 23,300 19,500 50 England 105,500 31,100 18,100 35,300 48,900 53 230W
Table 2 Local authority sales to sitting tenants (full ownership) 1990–91 Numbers of sales Discounted selling Market price Average discount Region houses flats price (houses + flats) houses flats (houses + flats) per cent. North (inc Cumbria) 8,900 600 n.a. 25,400 22,200 n.a. Yorks/Humberside 9,700 900 n.a. 27,900 22,200 n.a. East Midlands 4,000 600 n.a. 36,300 28,200 n.a. East Anglia 1,300 300 n.a. 49,200 44,800 n.a. London 4,700 14,000 n.a. 72,300 62,000 n.a. South East 6,600 2,600 n.a. 62,900 52,100 n.a. South West 2,800 800 n.a. 52,400 41,300 n.a. West Midlands 8,600 1,700 n.a. 35,700 25,500 n.a. North West 10,900 900 n.a. 26,400 22,600 n.a. England 57,500 22,300 n.a. 38,000 52,600 n.a. The Government have proposed that the maximum rebate for individuals or couples on income support or equivalent levels of income will be 100 per cent. of the council tax.
No assumptions about rebates were needed to produce the illustrative council tax figures issued on 23 April.
§ Mr. David PorterTo ask the Secretary of State for the Environment what representations he has received about the proposed 25 per cent. reduction in the council tax for people living alone; and if he will consider increasing it to 50 per cent. when he brings forward legislation.
§ Mr. Key[holding answer 13 May 1991]: We have received a number of representations on aspects of the council tax, including the level of the discount. The basic council tax bill for a couple represents half property, half personal element. The Government take the view that this is the appropriate balance between the two elements. Increasing the personal discount to 50 per cent. would mean that, if an empty property attracted two personal discounts, as we propose, it would not be liable for any council tax.