HC Deb 26 February 1990 vol 168 cc10-1W
Mr. Allen

To ask the Chancellor of the Exchequer how much was raised by local authorities in rates in each year since 1979; and what increase in income tax would have raised an equivalent sum at constant prices.

Mr. Lilley

The amount raised in total local authority rates in each year since 1978–79 is as follows:

£ billion £ billion at 1989–90 prices1
1978–89 5.8 13.6
1979–80 6.8 13.8
1980–81 8.7 14.9
1981–82 10.7 16.6
1982–83 12.1 17.5
1983–84 12.3 16.9
1984–85 13.0 17.0
1985–86 13.9 17.3
1986–87 15.7 19.0
1987–88 17.1 19.7
1988–89 18.9 20.2
1 Cash figures adjusted to 1989–90 price levels by excluding the effect of general inflation as measured by the GDP deflator at market prices.

In 1988–89 an extra 10p on both the basic and higher rates of income tax is estimated to have a direct yield of about £19 billion. This estimate ignores behavioural effects which would probably be significant.