§ Mr. Heddleasked the Secretary of State for the Environment if he will provide an estimate of the total yield from rates for 1981–82 broken down between non-domestic and domestic rates, respectively; and if he will provide equivalent figures for the past five years.
§ Mr. KingDomestic rate yields are net of grants paid to authorities to compensate for lost revenue from domestic rate relief and rate rebates. For 1981–82 the56W estimated yield for England and Wales was £4.1 billion—domestic—and £5.2 billion—non-domestic. The corresponding figures for the last five years are as follows:
Domestic and non-domestic rate yield 1976–77 to 1981–82 England and Wales Domestic rates Non-domestic rates £ billion £ billion 1976–77 1.6 2.5 1977–78 1.9 2.9 1978–79 2.2 3.1 1979–80 2.6 3.5 1980–81 3.4 4.4
§ Mr. Heddleasked the Secretary of State for the Environment what would be the effective increase in the basic rate of income tax if (a) domestic rates and (b) rates in their entirety were replaced by this tax source.
§ Mr. KingIn 1980–81 domestic rates raised some £3.6 billion in Great Britain and rates in their entirety some £8.6 billion. Equivalent revenues could have been raised from an increase in the basic rate of income tax of around 4½p or around 11p respectively.
§ Mr. Heddleasked the Secretary of State for the Environment what would be the effective percentage increase in the rate of value added tax if (a) domestic rates and (b) rates in their entirety were replaced by this tax source.
§ Mr. KingEquivalent revenues to those of domestic rates and rates in their entirety could have been raised—for Great Britain in 1980–81—by an increase in value-added tax of around 6 per cent. and around 14 per cent. respectively.