HC Deb 21 October 1987 vol 120 cc818-29W
Mr. Andrew Bowden

asked the Secretary of State for the Environment (1) if he will calculate at 1987–88 prices the relationship of gross net community charge to net household income in each band of equivalent net income set out in the Green Paper "Paying for Local Government" at figure F5 (a) on the basis used in the Green Paper, (b) on the basis of incorporating in income support and housing benefit an additional payment of 20 per cent. of domestic rates and (c) on the basis of present social security arrangements;

(2) if he will calculate at 1987–88 prices the numbers of households gaining and losing from the replacement of domestic rates by the community charge as set out in figure 17 of the Green Paper "Paying for Local Government" (a) on the basis used in the Green Paper, (b) on the basis of incorporating in income support and housing benefit an additional payment of 20 per cent. of average domestic rates and (c) on the basis of present social security arrangements.

Mr. Howard

The figures set out in the Green Paper were derived from a tax benefit model calibrated to 1984–85 prices. The model is currently being updated to 1986–87 prices, the latest date for which appropriate income information is available. When that work is complete we shall publish updated tables corresponding to those in the Green Paper.

Mr. Rooker

asked the Secretary of State for the Environment if foreigners will be identified on the community charge register so as to avoid their prosecution for not being on the electoral register; and if he will make a statement.

Mr. Howard

The community charges register and the electoral register will be separate documents. The two will not have the same coverage. The community charges register will contain the names of those adults who are solely or mainly resident in an area. Whether they are United Kingdom citizens will be immaterial. There is no question of someone who is not entitled to vote being prosecuted for not being on the electoral register.

Mr. Rooker

asked the Secretary of State for the Environment what proportion of the initial cost of the setting up the community charge collection system will be met by Her Majesty's Government.

Mr. Howard

The cost of setting up the community charge registration and collection system will be taken into account in rate support grant settlements.

Mr. Rooker

asked the Secretary of State for the Environment if joint and several liability for the poll tax will extend to married couples who are separated, but living in the same dwelling; and if he will make a statement.

Mr. Howard

A husband and wife who are members of the same household will be jointly liable for each other's community charge. Exceptionally, a husband and wife may have so organised their living arrangements that, though they live under the same roof, they are not members of the same household. In such circumstances it will be open to either member of the couple to make a case to the local authority that they should not be treated as jointly and severally liable for the purposes of recovery of the community charge.

Mr. Rooker

asked the Secretary of State for the Environment if the initial canvass for the poll tax register will require names, ages and relationship details of occupants of residential accommodation; and if he will make a statement.

Mr. Howard

Community charge registration officers will decide what information they require when sending out the initial canvass. In order to compile the register they will need to know the name and address of each adult liable for the personal community charge, but not the reltionship of one adult with another.

Mr. Rooker

asked the Secretary of State for the Environment if he will publish his latest estimate of the total number of people who will pay the full community charge; and if he will make a statement.

Mr. Howard

I refer the hon. Member to the reply which I gave to the hon. Member for Berwick-upon-Tweed (Mr. Beith) on 15 July at column527.

Mr. Rooker

asked the Secretary of State for the Environment what is his estimate of the number of couples where one partner will pay both community charges.

Mr. Howard

It is quite impossible for me to speculate on the private financial arrangements which will be macle by individual couples.

Mr. Rooker

asked the Secretary of State for the Environment (1) what is his latest estimate of the numbers of people who will be required to pay 20 per cent. of the community charge;

(2) if he will list for each local authority the number of dwellings where the rates paid are equal to the community charge per person, using the figures from the exemplifications placed in the Library since 11 June;

(3) if he will produce figure J7 of Cmnd. 9714 "Paying for Local Government", showing households gaining and losing with full replacement of domestic rates by the community charge by (a) region, (b) local authority, and (c) parliamentary constituency;

(4) if he will construct a table in the same form as figure J7 on page 125 of "Paying for Local Government" (Cmnd. 9714) showing the numbers of adults living in each of the households gaining and losing with full replacement of domestic rates by the community charge.

Mr. Howard

I shall answer these questions shortly.

Mr. Rooker

asked the Secretary of State for the Environment if he will give examples of the extreme cases in which individuals failing to register for the community charge may be liable to prosecution under the Theft. Acts, referred to in paragraph 22 of the "Paying for Local Government" deposited paper, NS. 2643.

Mr. Howard

We have proposed a number of civil penalties under the new system. These will be applied if a person fails, without reasonable excuse, to register for the community charge or to respond to a canvass. Where a person, by deception, dishonestly avoids paying all or part of the community charge by consistently supplying false information there will also be the possibility of recourse to the existing criminal law. In this respect the community charge will be no different from any other legally enforceable liability.

Mr. Rooker

asked the Secretary of State for the Environment (1) whether, in cases where the ownership or tenancy of a dwelling is in the wife's name, this will prevent her husband being designated the responsible person for community charge registration purposes; and if he will make a statement;

(2) whether, in cases where the ownership or tenancy of a dwelling is in the husband's name, this will prevent his wife being designated the responsible person for community charge registration purposes; and if he will make a statement.

(3) if the practice of married and unmarried couples alternating as head of household on electoral registration forms will be allowed on the community charge register;

(4) how the responsible person will be designated at each address for community charge registration purposes.

Mr. Howard

The responsible person at each address will be designated by the community charge registration office (CCRO) and will receive a notice of designation. This notice will be incorporated into the canvass form sent out by the CCRO.

The person designated will generally be the owner or tenant living at the address, but may be another person who has a connection with the property or who wishes to act as responsible person. The registration officer's objective will be to obtain timely and accurate information from each address. There will be nothing to prevent a husband and wife from alternating in responding to canvasses if they wish to do so.

Mr. Rooker

asked the Secretary of State for the Environment how the existing benefits of rate relief for disabled persons will be maintained under the community charge proposals.

Mr. Howard

Under the domestic rating system rateable values are increased to take account of extensions and alterations to property. Rate relief is granted to disabled people to ensure that they do not have to pay higher bills as a result of modifications needed to their homes as a result of their disability.

This problem will not arise with the community charge, because improvements to people's homes will not affect the level of the charge.

Mr. Rooker

asked the Secretary of State for the Environment what arrangements will be made for diplomatic staff resident in Britain to pay the community charge.

Mr. Howard

Foreign diplomats are not liable to pay United Kingdom taxes, including rates, and they will not be liable to pay the community charge. They do, however, make a contribution at present towards the cost of local authority services. We intend to establish arrangements for a similar contribution to be made when the community charge is introduced.

Mr. Rooker

asked the Secretary of State for the Environment if he will set out for each local authority the estimated percentage change in community charge for a one percentage increase in spending, using the figures from the exemplifications deposited in the Library since 11 June; and if he will make a statement explaining why there are differences in the gearing effect.

Mr. Howard

The intention is that there should be a pound for pound relationship between increases in expenditure per adult and the increase in the community charge as a result of the proposals we published on 23 September for the simplification of grant payments. It is also the case that for each local authority there should be a 1 per cent. increase in its gross charge for each 1 per cent. increase in its expenditure. The relationship, in percentage terms, between the aggregate change in expenditure and the change in the community charge for each local authority area will vary from area to area reflecting the relative importance of central grant and non-domestic rates in financing aggregate expenditure in that area. A £1 per adult increase in expenditure should still lead to a £1 increase in the community charge, however. I have placed figures in the Library demonstrating these relationships.

Dr. Cunningham

asked the Secretary of State for the Environment (1) if he will list in the Official Report those authorities budgeting to make contributions from their housing revenue account to the general rate fund in 1987–88, and express those contributions as a percentage of total expenditure and in terms of their effect on the published 1987–88 community charge calculations;

(2) what discussions his officials have had with the Audit Commission about any increase in external audit effort as a result of the introduction of the community charge;

(3) what discussion he has had with, or what representations he 'has received from the Audit Commission about the likely effect of his reform of local government finance on the economy, efficiency and effectiveness of local authorities;

(4) whether he will provide England-only versions of figures F1 to F5 and J4 to J8 of Cmnd. 9714, "Paying For Local Government" to take account of (a) 1987–88 community charge figures, (b) the most recent tax-benefit model and (c) most recent other data;

(5) whether he will provide versions of figures F1 to F5 and J4 to J8 of Cmnd. 9714, "Paying For Local Government", showing separately figures for London, metropolitan areas, and shire areas, to take account of (a) 1987–88 community charge figures, (b) the most recent tax-benefit model and (c) most recent other data;

(6) whether he will provide versions of figures J4, J5, J7 and J8 of Cmnd. 9714, "Paying For Local Government", showing separately figures for pensioner couples, to take account of (a) 1987–88 community charge figures, (b) the most recent tax-benefit model and (c) most recent other data;

(7) whether he will provide versions of figures J4 to J8 of Cmnd. 9714, "Paying For Local Government", showing figures for households with net incomes of under £200 per week, to take account of (a) 1987–88 community charge figures, (b) the most recent tax-benefit model and (c) most recent other data;

(8) whether he will update annexes F and J of Cmnd. 9714, "Paying For Local Government", particularly to take account of (a) 1987–88 community charge figures, (b) the most recent tax-benefit model and (c) most recent other data such as the Family Expenditure Survey;

(9) whether he proposes to make earlier rate support grant settlements in order to allow local authorities to take earlier decisions on levels of community charge;

(10) whether he proposes to amend section 79 of the Local Government Act 1972 so that, following his proposed introduction of a national non-domestic rate, ownership or tenancy of property or place of work cease to be qualifications for election and holding office as a member of a local authority;

(11) if squash clubs and other sports facilities will be exempt from the proposals contained in Cmnd. 9714 "Paying for Local Government", and in the subsequent consultation documents issued by his Department.

Mr. Ridley

I shall answer these questions shortly.

Dr. Cunningham

asked the Secretary of State for the Environment what discussion he has had with the Salvation Army about the impact of community charge on its activities.

Mr. Ridley

My officials have had two meetings with representatives of the Salvation Army to discuss the community charge.

Dr. Cunningham

asked the Secretary of State for the Environment what opinion polls or market research he has commissioned into attitudes to his proposed reform of local government finance; and whether he will publish the findings.

Mr. Ridley

None.

Dr. Cunningham

asked the Secretary of State for the Environment what discussions he has had with the local authority associations about the requirements of a community charge rebate scheme.

Mr. Ridley

An initial discussion of the community charge rebate scheme took place at the Housing Benefit Standing Committee on 3 September. We shall be deciding, with the local authority associations, the most appropriate forum for detailed discussions of the rebate scheme.

Dr. Cunningham

asked the Secretary of State for the Environment what plans he has to protect the privacy of occupants of women's refuges following the compilation of community charge registers.

Mr. Ridley

My officials have arranged to meet representatives of the Women's Aid Federation early next month to discuss the concerns that have been expressed about this issue.

Dr. Cunningham

asked the Secretary of State for the Environment if he will review the proposed community charge liability of members of religious orders who have taken vows of poverty.

Mr. Ridley

We are considering the impact of the community charge on people in such religious communities.

Dr. Cunningham

asked the Secretary of State for the Environment what discussions his officials have had with the local government training board on training programmes for canvassers for the community charge register in law, in interview techniques, in interpersonal skills for dealing with hostility and resentment, and in self-defence.

Mr. Ridley

None.

Dr. Cunningham

asked the Secretary of State for the Environment whether, for the purposes of his proposed exemption from full payment of community charge, he will define (a) full-time student and (b) term time address.

Mr. Ridley

The meaning of the term "full-time students" will be defined in regulations. They will he treated as having their sole or main residence in the places where they are resident for the purpose of undertaking their courses.

Dr. Cunningham

asked the Secretary of State for the Environment (1) what discussions officials from his Department have had with suppliers of computer software about the computing requirements in local government of his proposals for a community charge;

(2) what discussions officials from his Department have had with computer manufacturers about the increased computing capacity local authorities will require to cope with his proposals for a community charge.

Mr. Ridley

My officials have frequent contact with computer manufacturers and software suppliers about the computer systems requirements of the community charge.

Dr. Cunningham

asked the Secretary of State for the Environment what extra capital resouces he plans to make available to local government in 1988–89 and 1989–90 to enable the purchase of computers and buildings necessary to implement community charge.

Mr. Ridley

It is for local authorities to decide what, if any, capital investment they need to enable them to introduce the community charge efficiently. Estimates of the capital expenditure needed for this purpose will he considered, together with other requirements, in setting the overall provisions for spending in 1988–89 and subsquent years for the other services capital block.

Dr. Cunningham

asked the Secretary of State for the Environment (1) if he will give his estimates of the costs local authorities need to incur on current account in 1988–89 to set up the necessary systems for community charge registration and collection;

(2) what provision in local authorities' 1988–89 current expenditure he has made to take account of setting up the necessary systems for community charge registration and collection.

Mr. Ridley

It is doubtful whether local authorities will need to incur significant current expenditure in preparing for the community charge as early as 1988–89. To the extent that additional costs do arise, we believe that these can be accommodated within the proposed RSG settlement.

Dr. Cunningham

asked the Secretary of State for the Environment what representations he has received from the National Council for Civil Liberties about his proposals for a community charge.

Mr. Ridley

I have received no representations from the National Council for Civil Liberties about the community charge. However, I have seen the NCCL's recent report which contains a number of exaggerations and distortions.

Dr. Cunningham

asked the Secretary of State for the Environment if he will publish any advice he has received from the Data Protection Registrar on record-keeping aspects of the community charge.

Mr. Ridley

The registrar has confirmed that our proposals do not create any formal conflict with the Data Protection Act. He has, however, pointed to the importance of ensuring that the principles established by the Act are observed in the operation of the community charge system and has expressed concern about the sale of the register.

Dr. Cunningham

asked the Secretary of State for the Environment what research work he has commissioned into the feasibility of local authorities privatising the arrangements for collecting the community charge on the basis of the proposals set out in "Paying for Local Government"; and if he will publish this.

Mr. Ridley

No such research has been commissioned.

Dr. Cunningham

asked the Secretary of State for the Environment if he plans for the following types of hereditament to remain within rating if domestic rates are abolished: (a) time-share properties, (b) moorings, (c) houseboats, (d) caravans, and (e) lock-up garages.

Mr. Ridley

We intend to remove all domestic property from rating, once the community charge has been fully introduced. We propose that time-share properties, houseboat moorings, houseboats and residential caravans should come within the definition of domestic property. Lock-up garages used for residential purposes or in conjunction with residential property will also be treated as domestic property and will not, therefore, be liable to rates.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes to prescribe the form in which the community charge register will be kept.

Mr. Ridley

No.

Dr. Cunningham

asked the Secretary of State for the Environment whether the proposed joint and several liability for community charge will be restricted to couples of different sex living together as husband and wife.

Mr. Ridley

Yes.

Dr. Cunningham

asked the Secretary of State for the Environment what recovery procedures he envisages will be necessary in order to secure payment of community charge from persons jointly and severally liable; and whether a demand notice will be required to be issued to one partner in respect of the other's community charge liability.

Mr. Ridley

The recovery procedures will be the same as for individual liability. We envisage that a local authority will be able to take enforcement action against an individual in respect of their partner's failure to pay only when the individual has been sent a demand notice and reminder in respect of the partner's community charge.

Dr. Cunningham

asked the Secretary of State for the Environment whether he plans to offer owners of property a discount for collecting community charge; and in what other areas of taxation there is similar recognition of costs of collection.

Mr. Ridley

We propose that landlords of properties designated for the collective community charge should retain 5 per cent. of the collective charge contributions payable to them, as an allowance to cover their administrative costs and notional bad debts. Sections 55 and 56 of the General Rate Act 1967 permit similar recognition of costs of collection in respect of rates.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes that new town development corporations will be able to act as agents for district authorities in the collection of community charge with rents.

Mr. Ridley

Some local authorities currently use new town development corporations as agents to collect rates. I do not propose anything to prevent similar arrangements for the community charge, provided that the statutory requirements we envisage are met—in particular, that tenants should receive separate rent and community charge bills.

Dr. Cunningham

asked the Secretary of State for the Environment whether it will be possible to collect community charge from council tenants with rent (a) for couples to whom joint and several liability applies or (b) all members of a household.

Mr. Ridley

Local authorities will be able to collect amounts of community charge at the same time as rent, but not to issue inclusive bills.

Dr. Cunningham

asked the Secretary of State for the Environment what criteria he proposes to adopt to define those classes of property to which collective community charge will apply.

Mr. Ridley

We propose that the community charges registration officer may designate a property for the collective community charge (i) if in his opinion the property is used wholly or mainly as the sole or main residence of individuals, most or all of whom reside in the property for short periods, and are not solely or mainly resident elsewhere; and (ii) if in his opinion it is likely to be difficult to register the individuals for the personal community charge and to collect the personal charge from each of them.

Dr. Cunningham

asked the Secretary of State for the Environment how he proposes to ensure individual authorities are assisted in the cost of implementation of community charge in order to aviod the cost to ratepayers of such increases in spending being increased by the effect of negative marginal rates of grant.

Mr. Ridley

I shall take into account the estimated cost of implementating the community charge when I consider the level of relevant expenditure for the purposes of the remaining rate support grant settlements under existing arrangements. After 1990, under the new grant system, grant entitlements will not vary with expenditure and there will be no negative marginal rates of grant.

Dr. Cunningham

asked the Secretary of State for the Environment what provisions of the Data Protection Act he proposes will apply (a) to the ability of community charge registration officers to seek information to ensure accuracy of the community charge register and (b) to the community charge register.

Mr. Ridley

We do not propose to disapply any of the provisions of the Data Protection Act.

Dr. Cunningham

asked the Secretary of State for the Environment whether he will prohibit local authorities from carrying out canvasses for the community charge register at the same time as canvasses to compile the electoral register.

Mr. Ridley

The timing of community charge canvasses will be a matter for individual community charge registration officers.

Dr. Cunningham

asked the Secretary of State for the Environment whether local authorities will be empowered to offer for sale copies of the community charge register.

Mr. Ridley

I propose to take a regulation-making power which would enable me to authorise the sale of the register. I shall consider carefully whether and how the power is to be used.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes that the community charge registration officer will be empowered to demand information (a) from other persons within his employing authority, (b) from other local authorities, and (c) from other bodies; and if he will list the information and bodies concerned.

Mr. Ridley

We propose that the community charge registration officer should be empowered to require the supply of information needed for the carrying out of his functions from his own local authority, from other local authorities and their community charge registration officers.

Dr. Cunningham

asked the Secretary of State for the Environment (1) whether the following records will be required to be made available to community charge registration officers (a) housing benefit records, (b) educational records held by local education authorities' institutions and by local education authorities' (c) educational records held by universities, (d) educational records held by independent schools, (e) planning and building control records, (f) local authority rent rolls, (g) housing association rent rolls, (h) new town rent rolls, (i) housing waiting lists, (j) register of births, deaths and marriages, (k) environmental health records, (l) social services records, (m) local authorities' payroll record, (n) other employers' payroll records, (o) library records, (p) concessionary fare records, (q) insurance claims made upon authorities, and (r) public utilities records;

(2) if he will list any categories of information he proposes to exclude from the communtity charge register.

Mr. Ridley

We propose that, for the purposes of compiling their registers, community charges registration officers should have access to all information held by local authorities, with the exception of material of great personal sensitivity, which will be prescribed by the Secterary of State. They will not have access to national sources of data.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes to extend the Data Protection Act safeguards on computerised information to non-computerised information held for the purposes of community charge registration and collection.

Mr. Ridley

No.

Dr. Cunningham

asked the Secretary of State for the Environment whether other departments of a local authority will have access to records held by the community charge registration officer for the purposes of registration for community charge, and to records held by the appropriate officer for the purposes of collection of community charge.

Mr. Ridley

We propose that the electoral registration officer should be given a right of access to the community charges register. We do not propose to give local authorities a right of access to the register or to collection records, other than for the purposes of billing, payment and enforcement of the community charge.

Dr. Cunningham

asked the Secretary of State for the Environment whether individuals will have the right to inspect all information held about them for community charge purposes.

Mr. Ridley

We propose that individuals should have the right to inspect all information held about them on the community charge register. Individuals also have rights to inspect data held about them under the Data Protection Act 1984.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes to change the dates by which (a) precepts, and (b) rates, and possibly community charge, have to be made in order to allow local authorities to accommodate the receipt of community charge in 12 monthly instalments.

Mr. Ridley

We propose that everyone should have the right to pay the community charge by a minimum of 10 instalments, as they do at present with rates. It will not therefore be necessary to bring forward the dates by which precepts and community charges have to be set.

Dr. Cunningham

asked the Secretary of State for the Environment what is his estimate of the average daily rate per capita of any collective community charge to he paid by occupants of vagrants' hostels in inner London based on his 1987–88 figures; and whether this will be required to be paid net or gross of rebates.

Mr. Ridley

On the basis of the exemplifications placed in the Library on 29 June, column44 the average daily collective community charge payment in inner London would be £1.52. This figure is illustrative only, for the reasons I set out on 29 June. Nor does it take account of rebates. The arrangements for paying rebates will be announced in due course.

Dr. Cunningham

asked the Secretary of State for the Environment whether occupants of hostels for vagrants, such as those run by the Salvation Army, will be exempt from community charge by virtue of their being in institutions providing care.

Mr. Ridley

We have not yet finalised our definition of "hostel" for these purposes. But we envisage that exemptions would be limited to hostels providing a planned programme of care.

Dr. Cunningham

asked the Secretary of State for the Environment whether community charge rebates will be available in respect of standard community charge paid on second homes.

Mr. Ridley

No.

Dr. Cunningham

asked the Secretary of State for the Environment how sole or main residence will be defined for the purposes of establishing liability for personal community charge.

Mr. Ridley

We do not propose to define sole or main residence. Paragraphs 5 and 6 of the booklet entitled "Paying for Local Government. The Community Charge", which was placed in the Library on 15 December 1986, described how sole or main residence will be determined.

Dr. Cunningham

asked the Secretary of State for the Environment what powers of enforcement and recovery of community charge he expects to be able to be deployed against non-householders.

Mr. Ridley

Local authorities will be able to apply to magistrates' courts for warrants authorising distress and attachment of earnings. In each case, they will be able to choose either, or both, methods of recovery.

Dr. Cunningham

asked the Secretary of State for the Environment whether the right to pay community charge by instalments will be limited by virtue of his prescribing a minimum instalment.

Mr. Ridley

We propose to prescribe the minimum community charge instalment which local authorities will be obliged to accept. They will, however, be free to accept smaller instalments if they wish.

Dr. Cunningham

asked the Secretary of State for the Environment whether arrears of community charge will be deducted at source from income support paid by the Department of Health and Social Security.

Mr. Ridley

I have no present plans to do so.

Dr. Cunningham

asked the Secretary of State for the Environment whether he proposes to allow the community charge bills in respect of couples whom authorities think are jointly and severally liable to be sent to an address in one envelope.

Mr. Ridley

We propose that each individual should receive a separate bill for his or her community charge. If the bill is sent by post, it should be addressed to the person liable to pay it.