§ Mr. BoyesTo ask the Secretary of State for the Environment what is his estimate of the level of community charge which will apply in the Houghton and Washington constituency(a) with safety nets, and (b) assuming 10 per cent. non-payment.
§ Mr. HowardThe level of community charge which will apply when the new system is introduced will depend in large part on the spending decisions of individual local authorities. On the basis of 1987–88 expenditure figures, I estimate the safety netted community charge for Sunderland at £200. Any shortfall in collection would have to be recovered locally and would increase community charges proportionately for those who pay.
§ Mr. PaiceTo ask the Secretary of State for the Environment what would be the actual total contribution made from community charge payments and through central taxation by residents in the South Cambridgeshire district with the following circumstances:(a) a married couple with two young children and the husband only working with income of £7,500 per annum gross, (b) a married couple with two young children with a £30,000 mortgage where both are working with an income of £12,000 per annum gross, (c) as (b) with an income of £20,000 per annum gross and (d) as (b) with an income of £30,000 per annum gross.
§ Mr. HowardThe information required to make the estimates asked for is not available. Clearly the couple specified in case(d) will pay substantially more in income and direct taxes than the couple in case (a). Since half of local spending is met from national taxation, the former couple's total contribution—direct and indirect—to the cost of local services will be greater than in the case of the other family. Overall we estimate that the top 10 per cent. of households by income pay around 15 times as much as the lowest paid 10 per cent. of households towards the costs of local services.