COMMUNITY CHARGE—WALES: TRANSITIONAL RELIEF (Hansard, 6 November 1989)

§ The Minister of State, Department of Trade and Industry (Lord Trefgarne)

In July my right honourable friend the Secretary of State for Wales announced that the average community charge in Wales for 1990–91 would be £175, provided that Welsh local authorities budgeted in line with his plans. This will benefit all Welsh community chargepayers. In addition to this, a three-year scheme of community charge transitional relief is to be introduced which will provide further assistance to personal chargepayers in Wales. The cost of the scheme will be £17.5 million in 1990–91.

I am placing in the Library copies of a paper setting out the proposals, which have been the subject of consultation with the Welsh local authority associations. The scheme gives protection to those facing significant increases over their 1989–90 domestic rates bills. It will provide broadly the same protection as that provided by a district safety net but without the need for contributions from chargepayers.

The scheme introduced today will mean that in 1990–91 personal chargepayers in communities where domestic ratable values are low will face an increase of no more than £25 per year—less than 50p a week—over the average 1989–90 domestic rates bill for each adult in their community area, provided that local authorities spend in line with my plans. Residents of many communities, including most communities in the valleys, many rural communities and some inner city communities, will be protected from large increases as we introduce the new system.

In bringing forward these proposals, we must emphasise the important responsibility which now falls upon Welsh local authorities in their budget-making for 1990–91. The announcement made must not be taken by authorities as a signal to increase spending; rather, I look to Welsh local authorities to ensure, in setting their budgets for 1990–91, that the full benefits of these new arrangements flow through to chargepayers.