§ 36. Mr. RiddickTo ask the Secretary of State for the Environment what is his assessment of the expected effect of the introduction of the unified business rate in the Yorkshire and Humberside region.
§ Mr. GummerA uniform rate at the present average level of 239.5p would require reductions of up to 31 per cent. for businesses in all authorities in Yorkshire and Humberside, except York. Detailed figures were placed in the Library on 23 June by my right hon. Friend, pursuant to a written answer to the hon. Member for Copeland (Dr. Cunningham) at column713.
§ 37. Mr. Andrew SmithTo ask the Secretary of State for the Environment what additional funds he proposes to make available to the Oxford city council to meet the administrative costs of poll tax collection.
§ Mr. GummerMy right hon. Friend announced on 21 October that half the provision of £110 million included in the 1989–90 RSG settlement for the current costs of preparing for the community charge will be met through a specific grant. Oxford city council's share of that £55 million has been estimated to be £156,000. The remaining half of the expenditure will be supported by rate support grant. Expenditure incurred by authorities on collection of the community charge in 1990–91 and subsequent years will be supported through revenue support grant.
My right hon. Friend also announced on 21 October that capital allocations for 1989–90 will include a specific allocation of £135 million for the capital costs of preparation for the community charge. Allocations to individual authorities will be announced as soon as possible following discussions with the local authority associations. These allocations will be additional to the £25 million made for 1989–90 of which Oxford city's share was £62,073.
§ 73. Mr. PikeTo ask the Secretary of State for the Environment what are his latest estimates of the cost of the introduction of the poll tax and the annual cost of its collection.
§ Mr. GummerThe Government commissioned Price Waterhouse to undertake a study of the costs likely to be incurred by charging authorities in administering the community charge. In their report, published on 23 June, the consultants estimated the preparation costs in 1989–90 in England and Wales to be between £99 million and £122 million for current expenditure, and between £125 million and £175 million for capital expenditure. The community 681W charge will be paid by almost all adults in order to increase democratic accountability. In contrast, only about 50 per cent. paid rates. The cost of billing over twice as many people will therefore be almost twice as great as the old system. Price Waterhouse estimated that the annual cost of collecting the community charge would be between £379 million and £435 million, compared to the £200 million a year it now costs to collect rates.
§ Mr. RookerTo ask the Secretary of State for the Environment if he will construct a table in the same form as figure F3 on page 106 of Cmnd. 9714, "Paying for Local Government" showing the relationship in England of rateable values to net household income separately for(a) single pensioner households, (b) other single adult households, (c) two adult households and (d) three adult households.
§ Mr. GummerEstimates of the relationship between local taxes and income were published on 13 January 1988 and copies are in the Library. We are preparing a revision of these figures and I will write to the hon. Member when revised estimates are available.