HC Deb 14 October 1991 vol 196 cc45-6W
Mr. Dewar

To ask the Secretary of State for Scotland if he will publish a table showing, for the years 1966–67 to 1991–92(a) average household domestic rate/community charge hills in pounds sterling, (b) average domestic rate/community charge bills adjusted by the retail prices index, (c) average domestic rate/community charge bill as a proportion of average household income and (d) average domestic rate/community charge bills as a proportion of male average earnings.

Mr. Lang

The following table gives average gross domestic rate bills, excluding water rates. Figures excluding water are not available for years prior to 1968–69.

Average gross domestic rates bill (excluding water)
Year £
1968–69 41
1969–70 44
1970–71 49
1971–72 59
1972–73 60
1973–74 65
1974–75 77
1975–76 99
1976–77 111
1977–78 128
1978–79 119
1979–80 137
1980–81 183
1981–82 252
1982–83 285
1983–84 287
1984–85 304
1985–86 366
1986–87 391
1987–88 443
1988–89 463

Estimated average gross community charge bills per household were as follows:

Average gross community charge bill (excluding water) per household
Year £
1989–90 517
1990–91 565
1991–92 457

Information on the retail prices index is published in "Economic Trends"; average household income by region is published in the annual "Family Expenditure Survey" reports and "Regional Trends"; average male earnings by region are published in the annual "New Earnings Survey" (Volume E) and reported also in "Regional Trends". The publications are available in the House of Commons Library.

Mr. Bill Walker

To ask the Secretary of State for Scotland if he will announce his provisional community capping criteria for Scottish local authorities for 1992–93.

Mr. Lang

I now have power to charge cap a Scottish local authority in two circumstances; first, where I consider that its planned expenditure is excessive; and, secondly, where there is an excessive increase in its planned expenditure as compared with the previous year.

I hope that as I am specifying well in advance the principles which I am minded to adopt next year, authorities will take appropriate action to control their spending. In view of the continuing fall in inflation and the scope which undoubtedly exists within Scottish local government for improved efficiency, the principles are extremely realistic. There is no need for draconian cuts in services.

For 1992–93 my intended principles are:

(i) any increase in budget between 1991–92 and 1992–93 of more than 6.5 per cent. will be an excessive increase if the resulting budget is above the local authority's grant-aided expenditure assessment for 1992–93;

(ii)any increase in budget between 1991–92 and 1992–93 of more than 4.5 per cent. will be an excessive increase if the resulting budget is over 5 per cent. above the local authority's GAE assessment for 1992–93;

(iii) any increase in budget between 1991–92 and 1992–93 of more than 2.5 per cent. will be an excessive increase if the resulting budget is over 10 per cent. above the local authority's GAE assessment for 1992–93;

(iv) any budget for 1992–93 more than 12.5 per cent above the local authority's GAE assessment will be excessive save that:

  1. (a) if that budget is 30 per cent. or less above the authority's GAE assessment for 1992–93 and that budget is no greater than the budget set by that authority for 1991–92, the authority will not be capped;
  2. (b)if that budget is not more than 60 per cent. above the authority's GAE assessment for 1992–93 and that budget is less than 5 per cent. below the budget set by that authority for 1991–92, the authority will not be capped:
  3. (c) if that budget is is at least 10 per cent. below the budget set by the authority for 1991–92, the authority will not be capped.

These principles are necessarily provisional. Before taking my decisions on capping I will, of course, take into account all appropriate considerations.

It should not be necessary for me to use these powers because if local authorities take full account of the interests of their local residents in this, the last year of the community charge, they will keep their spending plans under control.