§ Mr. Michael Spicerasked the Chancellor of the Exchequer what would be the effect on (a) the standard rate of income tax and (b) the rate of value added tax, respectively, of meeting the cost of (i) police services and (ii) fire services, respectively, from those taxes.
§ Mr. Peter Rees[pursuant to his reply, 12 May 1980, c. 381]: Central Government already provide a specific grant of 50 per cent. for police services; and 61 per cent. of fire expenditure is met from the rate support grant. It is estimated that to transfer the total cost for police would require the addition of about one percentage point on value added tax or 1p on the basic rate of income tax. In the case of fire services, the addition would be less than a half of one percentage point on value added tax, or less than ½p on the basic rate of income tax.