§ Mr. Edward DaveyTo ask the Chancellor of the Exchequer if he will update the information set out in the answer of 17 November 2003,Official Report, columns 520–22W, on council tax, to take account of the effects of taxes and benefits on household income in 2002–03. [174862]
§ Ruth KellyThe information requested falls within the responsibility of the National Statistician, who has been asked to reply.
Letter from Len Cook to Mr. Edward Davey, dated 24 May 2004:
1455WAs National Statistician, I have been asked to reply to your recent question asking for an update of the information set out in the answer of 17 November 2003, Official Report, columns 520–22W, giving how much council tax was paid as a proportion of gross income for households in each income quintile group in each English region. (174862)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. This is a sample survey covering about 7,000 households in the UK and sample sizes for each region are only sufficient to give approximate estimates.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 includes updated 2001–02 figures on this basis for comparison.The table shows, for 2001–02 and 2002–03, the average net council tax paid for all households in each Government Office Region and for each income quintile group within each region where households are ranked by equivalised disposable income. Equivalisation is a standard methodology that takes into account the size and composition of households and adjusts their incomes to recognise differing demands on resources. The net council tax figures are gross council tax less reported council tax benefits and discounts. The table also shows the boundaries between equivalised disposable income quintiles, which have been calculated separately for households in each Government Office Region. For example, the 1st quintile boundary is the income level below which one fifth of those households are estimated to lie.
Net council tax paid by households within each Government Office Region by equivalised disposable income quintile, 2001–02-England North East North West and Merseyside Yorkshire and the Humber Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income 4th — 707 2.3 — 750 2.6 — 647 2.4 26,154 — — 24,290 — — 23,907 — — Top — 872 15 — 936 1.8 — 846 1.7 All households in region — 548 2.2 — 635 2.6 — 553 2.3
East Midlands West Midlands Eastern Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Quintile Bottom — 484 5.1 — 426 4.8 — 468 5.3 10,517 — — 10,071 — — 11,116 — — 2nd — 549 3.5 — 429 3.5 — 527 3.4 14,894 — — 13,958 — — 16,206 — — 3rd — 679 2.8 — 598 2.6 — 722 2.7 19,777 — — 18,032 — — 22,332 — — 4th — 725 2.3 — 782 2.3 — 786 2.1 26,917 — — 25,358 — — 30,455 — — Top — 785 1.4 — 781 1.5 — 885 1.4 All households in region — 644 2.4 — 603 2.3 — 678 2.2
London South East South West Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Quintile Bottom — 444 4.6 — 473 4.8 — 474 5.4 11,647 — — 12,758 — — 10,955 — — 2nd — 559 3.1 — 643 3.3 — 570 3.8 17,770 — — 18,203 — — 14,643 — — 3rd — 753 2.2 — 746 2.6 — 674 3.0 25,855 — — 24,832 — — 19,555 — — 4th — 789 1.7 — 831 1.9 — 746 2.5 38,166 — — 35,472 — — 26,542 — — Top — 886 1.0 — 981 1.3 — 897 15 All households in region — 686 1.7 — 735 2.0 — 672 2.5 Note: 1 Boundary point between equivalised disposables income quintiles. Source: Office for National Statistics, based on the analysis 'The effects of taxes and benefits on household income'
1456W1457W
Net council tax paid by households within each Government Office Region by equivalised disposable income quintile, 2002–2003-England North East North West and Merseyside Yorkshire and the Humber Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Quintile Bottom — 395 4.1 — 378 4.0 — 368 4.0 10,600 — — 10,952 — — 10,378 — — 2nd — 474 3.5 — 487 3.3 — 490 3.4 14,052 — — 14,832 — — 14,181 — — 3rd — 541 2.6 — 597 2.7 — 556 2.7 18,501 — — 19,287 — — 19,533 — — 4th — 697 2.5 — 753 2.4 — 670 2.3 24,518 — — 26,993 — — 25,829 — — Top — 883 1.8 — 979 1.9 — 847 1.6 All households in region — 598 2.4 — 639 2.4 — 586 2.4
East Midlands West Midlands Eastern Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1(£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Quintile Bottom — 513 5.1 — 406 4.3 — 591 5.4 10,992 — — 10,865 — — 12,113 — — 2nd — 558 3.4 — 497 3.3 — 580 3.3 15,238 — — 14,259 — — 16,944 — — 3rd — 691 2.9 — 656 2.9 — 784 2.9 20,734 — —- 19,323 — — 22,195 — — 4th — 835 2.3 — 802 2.4 — 855 2.3 28,150 — — 26,717 — — 33,990 — — Top — 956 1.6 — 883 1.7 — 958 1.5 All households in region — 711 2.4 — 649 2.5 — 753 2.4
London South East South West Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Income boundary1(£) Net council tax (£) Net council tax as percentage of gross income Income boundary1 (£) Net council tax (£) Net council tax as percentage of gross income Quintile Bottom — 395 3.7 — 553 5.3 — 480 5.6 11,904 — — 12,545 — — 11,576 — — 2nd — 507 3.1 — 660 3.6 — 602 4.0 17,009 — — 18,310 — — 16,173 — — 3rd — 714 2.3 — 851 2.9 — 769 3.0 26,286 — — 24,805 — — 21,231 — — 4th — 918 1.9 — 938 2.3 — 844 2.5 37,876 — — 33,743 — — 29,152 — — Top — 928 1.0 — 1050 1.5 — 988 1.8 All households in region — 693 1.8 — 811 2.4 — 737 2.7 Note 1Boundary point between equivalised disposable income quintiles. Source: Office for National Statistics, based on the analysis 'The effects of taxes and benefits on household income'.