§ Mr. Hirstasked the Chancellor of the Exchequer if he will estimate the additional cost to the Exchequer of central Government funding the entire cost of police, fire and water services throughout the United Kingdom; and what would be the consequential increase in the standard rate of income tax.
§ Mr. Peter ReesCurrent expenditure by local authorities on police in 1983–84 is budgeted at £2.7 billion, including £10 million financed from the regional rate in Northern Ireland. Half of that is already directly financed by the Exchequer through police specific grant. To meet the balance of expenditure, basic rate tax would 365W have to be increased by just under 1½p. Expenditure on fire is £0.6 billion, including £2.4 million financed from the regional rate in Northern Ireland. To finance that directly from the Exchequer would mean adding just over ½p to basic rate tax, if grants paid to local authorities were not reduced.
Provision of water services is not a local authority function in England and Wales: it is provided by the statutory water companies and the 10 water authorities. In Scotland, water services are provided by local authorities but only part of their expenditure is financed from the rates. Current expenditure on water services in 1983–84 is just over £2.7 billion including expenditure financed from the regional rate in Northern Ireland. This also approximates to the net additional cost to the Exchequer and is equivalent to just over 2½p on basic rate income tax.