§ Mr. ClellandTo ask the Secretary of State for the Environment what are the assumed contributions to local expenditure for each authority from(a) Government funds and (b) business rates in the tables contained in the document "1989–90 Illustrative Capital Value Rates and Local Income Tax" published on 19 July.
§ Mr. GummerThe illustrative capital value rates and local income tax figures published on 19 July assume that Government funds and business rates are distributed to achieve full equalisation of tax rates. This means that in every area the same tax rates would apply if all local authorities were spending at the level needed to provide a standard level of services. The level of grant entitlement would vary if expenditure were at a different level in order to ensure that each £1 per head of additional spending in any area would lead to exactly the same change in tax rates. Areas with high average house values and high average taxable incomes would receive less grant with higher spending, while areas with low taxable resources would receive more grant with higher spending.