§ Dr. Vincent CableTo ask the Chancellor of the Exchequer if he will update the information set out in the Answer of 10th June 2003, Official Report,
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Council tax as a percentage of gross income Great Britain Percentages Quintile groups of all households ranked by equivalised disposable income Bottom 2nd 3rd 4th Top All households
2001–02 Quintile points (equivalised
disposable income, £ per year)
Great Britain 10,647 14,943 20,231 28,840 England 10,771 15,094 20,641 29,328 Scotland 10,035 13,838 18,331 26,339 Wales 10,103 14,367 18,429 25,604 Gross council tax Great Britain 7.2 4.4 3.1 2.3 1.4 2.6 England 7.1 4.3 3.0 2.2 1.4 2.5 Scotland 8.4 5.3 3.8 3.0 2.1 3.4 Wales 6.0 3.5 2.6 2.1 1.4 2.3 Net council tax1 Great Britain 4.7 3.3 2.8 2.3 1.4 2.2 England 4.7 3.3 2.8 2.2 1.3 2.2 Scotland 5.0 4.1 3.3 2.9 2.1 2.9 Wales 4.2 2.5 2.5 2.1 1.4 2.0 2002–03 Quintile points (equivalised
disposable income, £ per year)
Great Britain 11,242 15,541 20,977 29,745 England 11,397 15,870 21,392 30,254 Scotland 10,503 13,965 18,679 26,176 Wales 9,902 14,392 18,695 26,080 Gross council tax Great Britain 7.1 4.6 3.2 2.4 1.6 2.7 England 7.1 4.4 3.1 2.4 1.5 2.7 Scotland 8.4 5.8 4.3 3.0 2.0 3.4 Wales 6.2 4.0 2.8 2.2 1.6 2.6 columns 746–47W, on council tax, to take account of the effects of taxes and benefits on household income in 2002–03. [172602]
§ Ruth KellyThe information requested falls within the responsibility of the National Statisticion. I have asked him to reply.
Letter from Colin Mowl to Dr. Vincent Cable, dated 14 May 2004:
As National Statistician, I have been asked to reply to your recent question to the Chancellor of the Exchequer asking for an update for 2002–03 of the figures for council tax as a percentage of gross income for Great Britain, together with a breakdown for England, Scotland, and Wales, given in the previous answer of 10 June 2003. (172602)
Estimates have been produced from the Office for National Statistics' analysis "The effects of taxes and benefits on household income" published on the National Statistics website on 6 May 2004 at http://www.statistics.gov.uk/taxesbenefits. The analysis includes measures of income inequality for the United Kingdom as a whole based on data from the Expenditure and Food Survey.
The current analysis presents data for the category 'Council tax and Northern Ireland rates', as opposed to the category 'Local taxes' used in previous analyses. This is because, from this year, charges made by water authorities for water, environmental and sewerage services have been excluded. This treatment conforms to the National Accounts classification and definition of taxes where water rates and related charges are considered a charge for services rather than a tax. They have therefore been excluded from the calculation of disposable income. This reply is based on the new methodology and I have included updated figures on this basis for 2001–02 for comparison.
The following table shows the estimated gross and net council tax for all households in Great Britain and (a) England, (b) Scotland and (c) Wales, for each income quintile where households are ranked by equivalised disposable income. The net council tax figures are gross council tax less benefits and discounts. The table also shows the equivalised disposable income quintile point boundaries, which have been calculated separately for Great Britain and each country. For example, the 1st quintile point for each country is the income below which one fifth of households in that country are estimated to lie.
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Council tax as a percentage of gross income Great Britain Percentages Quintile groups of all households ranked by equivalised disposable income Bottom 2nd 3rd 4th Top All households
Net council tax1 Great Britain 4.6 3.4 2.9 2.4 1.6 2.4 England 4.6 3.3 2.8 2.3 1.5 2.3 Scotland 5.3 4.1 3.7 2.9 2.0 2.9 Wales 4.0 2.9 2.4 2.0 1.6 2.2 1 Net council taxes after deducting benefits and discounts Source:
Office for National Statistics, based on the analysis 'The effects of taxes and benefits on household income', published on the ONS website and in Economic Trends.