Local Government Finance (Hansard, 2 March 1992)

§ Mr. Harry Greenway
To ask the Secretary of State for the Environment If he will detail each local authority with the percentage of its community charge collected in 1990–91, and 1991–92 to date, in descending order of percentage collected; and if he will make a statement.

§ Mr. Key
I am arranging for the available information to be placed in the Library of the House.

§ Mr. Squire
To ask the Secretary of State for the Environment if he will publish the proportion of local authority revenue expenditure in England financed by

Local Authority Revenue Expenditure

Revenue Expenditure¹ Government Grants² Non-Domestic rates³ Domestic Rates/Community Charges⁴

Cash £ million 1991–92 prices £ million Cash prices £ million 1991–92 £ million Per cent. Cash prices £ million 1991–92 £ million Per cent. Cash prices £ million 1991–92 £ million Per cent.

1981–82 20,106 36,026 11,234 20,129 56 5,013 8,982 25 4,034 7,228 20

1982–83 21,952 36,718 11,705 19,578 53 5,685 9,509 26 4,548 7,607 21

1983–84 23,263 37,188 12,584 20,117 54 6,042 9,659 26 4,382 7,005 19

1984–85 24,119 36,719 13,126 19,983 54 6,361 9,684 26 4,707 7,166 20

46W
(a) Government grant, (b) non-domestic rates and (c) local domestic taxation in each year from 1978–79 to 1990–91 and estimates for 1991–92 and 1992–93.

§ Mr. Key
The available information is as follows:

Local Authority Revenue Expenditure¹

Government grants² as percentage of local authority expenditure Non-domestic rates³ as percentage of local authority expenditure Domestic rates/community changes⁴ as percentage of local authority expenditure

1981–82 56 25 20

1982–83 53 26 21

1983–84 54 26 19

1984–85 54 26 20

1985–86 54 28 21

1986–87 50 28 22

1987–88 49 28 23

1988–89 46 28 25

1989–90 44 29 26

1990–91 41 29 28

1991–92 52 31 16

¹1992–93 56 29 15

¹ For the years 1981–82 to 1989–90, local authority expenditure is taken to be 'relevant expenditure' plus expenditure on certain non-relevant items such as net expenditure on mandatory student awards. It represents spending to be financed by rate support grant, relevant specific grants, rates and balances. This measure of expenditure is net of sales, fees and charges, interest receipts etc. For the years 1990–91 to 1992–93 local authority expenditure is 'revenue expenditure do compare with TSS' which is expenditure to be met from revenue support grant, specific grants in aggregate external finance, special grants, non-domestic rates, community charges and appropriation from reserves In 1991–92 the also included community charge grant and in 1992–93 this will include teachers pay award additional grant.

² For the years 1978–79 to 1989–90 Government grants comprise aggregate exchequer grant and rate rebate grants. For the years 1990–91 to 1992–93 Government Grants included are revenue support grant, special grants, specific grants in aggregate external finance, community charge grant (1991–92), teachers pay award additional grant (1992–93), community charge benefit and transitional relief/community charge reduction scheme grants.

³ For the years 1981–82 to 1989–90 this represents non-domestic rate yields net of rate relief. For the years 1990–91 to 1992–93 this represents the distributable amount from the non-domestic rates pool.

⁴ Net of domestic rate rebates for the years 1981–82 to 1989–90, net of community charge benefit grant and transitional relief/ community charge scheme grant in 1990–91, 1991–92 and 1992–93.

⁵ 1992–93 settlement.

§ Mr. Blunkett
To ask the Secretary of State for the Environment if he will publish a table showing the breakdown of local authority revenue for each year from 1979–80 to 1991–92 in terms of (i) Government grant, (ii) business rates and (iii) rates/poll tax expressed both in million pounds and constant prices and as a percentage.

§ Mr. Portillo
The available information is as follows:
47W

Revenue Expenditure¹ Government Grants² Non-Domestic rates³ Domestic Rates/Community Charges⁴

Cash £ million 1991–92 prices £ million Cash prices £ million 1991–92 £ million Per cent. Cash prices £ million 1991–92 £ million Per cent. Cash prices £ million 1991–92 £ million Per cent.

1985–86 24,284 35,037 13,069 18,856 54 6,740 9,725 28 5,094 7,350 21

1986–87 26,630 37,199 13,402 18,721 50 7,566 10,569 28 5,912 8,258 22

1987–88 28,980 38,394 14,274 18,911 49 8,088 10,715 28 6,539 8,663 23

1988–89 31,240 38,615 14,469 17,885 46 8,819 10,901 28 7,689 9,504 25

1989–90 33,282 38,633 14,707 17,072 44 9,595 11,138 29 8,487 9,852 26

1990–91 36,448 38,993 15,037 16,090 41 10,429 11,159 29 10,109 10,817 28

1991–92 39,880 39,880 20,834 20,834 52 12,408 12,408 31 6,388 6,388 16

Notes:

¹For the years 1981–82 to 1989–90, local authority expenditure is taken to be 'relevant expenditure' plus expenditure on certain non-relevant items such as net expenditure on mandatory student awards. It represents spending to be financed by rate support grant, relevant specific grant, rates and balances. This measure of expenditure is net of sales, fees and charges, interest receipts etc. For the years 1990–91 and 1991–92 local authority expenditure is 'revenue expenditure to compare with TSS' which is expenditure to be met from revenue support grant, specific grants in aggregate external finance, special grants, non-domestic rates, community charges and appropriation from reserves. In 1991–92 this also included community charge grant.

² For the years 1981–82 to 1989–90 Government grants comprise aggregate Exchequer grant and rate rebate grants. For 1990–91 and 1991–92 Government grants included are revenue support grant, special grants, specific grants in aggregate external finance, community charge grant (1991–92), community charge benefit grant and transitional relief/community charge reduction scheme grant.

³ For the years 1981–82 to 1989–90, this represents non-domestic rate yields net of rate relief. For the years 1990–91 to 1991–92 this represents the distributable amount from the non-domestic rates pool

⁴ Net of domestic rate rebates for the years 1981–82 to 1989–90. Net of community charge benefit grant and transitional relief/community charge reduction scheme grant for the years 1990–91 and 1991–92.

§ Mr. Blunkett
To ask the Secretary of State for the Environment what amount of poll tax revenue is outstanding to local authorities for 1990–91 and 1991–92.

§ Mr. Portillo
Local authorities budgeted to collect £10,200 million in community charges in respect of 1990–91 and £6,400 million in respect of 1991–92. I estimate that by 31 December 1991 they had collected £9,900 million of the former and £4,300 million of the latter. Much of the remaining 1991–92 amounts will subsequently have been collected in the form of routine monthly payments in January and February 1992.

§ Mr. Blunkett
To ask the Secretary of State for the Environment what targets his Department has set for local authorities' collection of poll tax; and if he will make a statement.

§ Mr. Portillo
Local authorities should be attempting to collect 100 per cent. of the community charges due in their areas; well-managed authorities are coming very close to achieving this.

§ Mr. Blunkett
To ask the Secretary of State for the Environment what representations he has received on the safety net arrangements within the national non-domestic rate system; and if he has any plans to make changes to those arrangements.

§ Mr. Portillo
We have received a number of representations about the non-domestic rate transitional arrangements. We shall shortly be making regulations to allow transitional protection to continue in cases where a local authority waste disposal company takes over property occupied by an existing waste disposal authority under part II of the Environmental Protection Act 1990.

§ Mr. Blunkett
To ask the Secretary of State for the Environment what plans he has to make changes to the arrangements for the national non-domestic rate for 1992–93; and if he will make a statement.

§ Mr. Portillo
A number of provisions modifying the non-domestic rating system are contained in schedule 10 to the Local Government Finance Bill. Those which would48W have effect in 1992–93 concern the payment of interest in respect of overpayments of rates, the rating of multiple moorings, the exemption of church property, the reference date for the determination of rateable values, and the information which charging authorities must take into account in calculating their contributions into the national non-domestic rating pool.

Local Authority Revenue Expenditure
	Revenue Expenditure¹	Government Grants²	Non-Domestic rates³	Domestic Rates/Community Charges⁴
	Cash £ million	1991–92 prices £ million	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.
1981–82	20,106	36,026	11,234	20,129	56	5,013	8,982	25	4,034	7,228	20
1982–83	21,952	36,718	11,705	19,578	53	5,685	9,509	26	4,548	7,607	21
1983–84	23,263	37,188	12,584	20,117	54	6,042	9,659	26	4,382	7,005	19
1984–85	24,119	36,719	13,126	19,983	54	6,361	9,684	26	4,707	7,166	20

Local Authority Revenue Expenditure¹
	Government grants² as percentage of local authority expenditure	Non-domestic rates³ as percentage of local authority expenditure	Domestic rates/community changes⁴ as percentage of local authority expenditure
1981–82	56	25	20
1982–83	53	26	21
1983–84	54	26	19
1984–85	54	26	20
1985–86	54	28	21
1986–87	50	28	22
1987–88	49	28	23
1988–89	46	28	25
1989–90	44	29	26
1990–91	41	29	28
1991–92	52	31	16
¹1992–93	56	29	15
¹ For the years 1981–82 to 1989–90, local authority expenditure is taken to be 'relevant expenditure' plus expenditure on certain non-relevant items such as net expenditure on mandatory student awards. It represents spending to be financed by rate support grant, relevant specific grants, rates and balances. This measure of expenditure is net of sales, fees and charges, interest receipts etc. For the years 1990–91 to 1992–93 local authority expenditure is 'revenue expenditure do compare with TSS' which is expenditure to be met from revenue support grant, specific grants in aggregate external finance, special grants, non-domestic rates, community charges and appropriation from reserves In 1991–92 the also included community charge grant and in 1992–93 this will include teachers pay award additional grant.
² For the years 1978–79 to 1989–90 Government grants comprise aggregate exchequer grant and rate rebate grants. For the years 1990–91 to 1992–93 Government Grants included are revenue support grant, special grants, specific grants in aggregate external finance, community charge grant (1991–92), teachers pay award additional grant (1992–93), community charge benefit and transitional relief/community charge reduction scheme grants.
³ For the years 1981–82 to 1989–90 this represents non-domestic rate yields net of rate relief. For the years 1990–91 to 1992–93 this represents the distributable amount from the non-domestic rates pool.
⁴ Net of domestic rate rebates for the years 1981–82 to 1989–90, net of community charge benefit grant and transitional relief/ community charge scheme grant in 1990–91, 1991–92 and 1992–93.
⁵ 1992–93 settlement.