§ Mr. LlwydTo ask the Secretary of State for Wales if he will make it his policy to adjust the poundage rates applied to the uniform business rate in Wales in line with the poundage levels set for England.
§ Mr. Gwilym JonesNo. The poundage for Wales and England were set in 1990 at a level which ensured that the overall yield from non-domestic ratepayers remained at the 1989–90 level in real terms. The Welsh poundage was set at a higher rate than the English poundage in 1990 because of lower rateable values in Wales. Since 1990, the poundages in Wales and England have been uprated each year in line with the annual increase in the retail prices index as at September of the preceding year.
The loss of revenue consequent on a real-terms reduction in the Welsh poundage would have to be met from either increased revenue support grant or by the imposition of higher council tax bills on the people of Wales.