§ 57. Dr. ReidTo ask the Secretary of State for the Environment what was the average rates bill as a proportion of earnings for a one-earner family with two children on 75 per cent. average earnings in 1989–90; and what he estimates the proportion of income going on the poll tax will be for the same family in 1990–91.
58. Mr. Ted GarrettTo ask the Secretary of State for the Environment what was the average rates bill as a proportion of earnings for a one-earner family with two children on 75 per cent. average earnings in 1989–90; and what he estimates the proportion of income going on the poll tax will be for the same family in 1990–91.
§ Mr. CousinsTo ask the Secretary of State for the Environment how much, in cash and as a percentage of local government income, was met by(a) revenue support grant, (b) uniform business rate and (c) community charge in England in 1990–91.
§ Mr. ChopeThe figures are given in the table.
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£ billion Per cent. 1989–90 Rate support grant 9.6 33 Non-domestic rate income1 9.5 33 Domestic rate income2 9.7 34 1990–91 Revenue support grant 9.5 29 Non-domestic rate income 10.4 32 Charge income3 12.7 39 Notes:
Figures shown for 1989–90 and 1990–91 are not on a comparable basis because of extensive changes to the system of local government finance.
In 1990–91, local authorities also received special transitional grants totalling £187 million.
1 Net of disabled non-domestic rate relief grant and enterprise zone grant.
2 Net of domestic rate relief grant, but including domestic rate rebates.
3 Including community charge benefits and household transitional relief grant.
§ Mr. Campbell-SavoursTo ask the Secretary of State for the Environment on how many occasions officials from his Department met officials of Westminster city council in December, January, February and March to discuss matters relating to the community charge.
§ Mr. PortilloNone.
§ Mr. CohenTo ask the Secretary of State for the Environment what guidance was given to local authorities and what allowance was made in standard spending assessments for provision for bad debts and non-payment of the poll tax; and what is Her Majesty's Government's policy on what local authorities should allocate for this provision.
§ Mr. ChopeIt is for each charging authority, in setting the community charge for its area, to make such reasonable provision for non-collection as may be necessary in the light of its individual circumstances. Since there are approximately twice as many charge payers as ratepayers, the absolute number of slow payers can be expected to he greater, but there is no reason why the cash volume of arrears should be greater than under the rating system. Losses through non-payment represent a reduction in revenue rather than an item of expenditure, and are therefore not reflected in standard spending assessments.
§ Mr. Quentin DaviesTo ask the Secretary of State for the Environment what would be the cost of extending to one year the period during which empty properties are not subject to the standard community charge.
§ Mr. ChopeThe information is not available. But charging authorities already have the discretion to extend the prescribed three-month period for which no standard charge is payable. We are currently collecting information on the use which authorities have made of their discretion and, from the evidence so far, it is clear that a number have decided to extend this period to 12 months.
§ Mr. AmosTo ask the Secretary of State for the Environment if he will make it his policy to withdraw the discretion given to local councils to fix the level of community charge on property which is not classed as the main or principal residence; and if he will make a statement.
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§ Mr. ChopeWe have made it clear that if local authorities do not make sensitive use of the wide discretion available to them we shall introduce more prescription in time for 1991–92. My right hon. Friend will make a statement on this as soon as we have completed the review of local authority standard charge practices.
§ Mr. ChurchillTo ask the Secretary of State for the Environment what estimate he has made of the cost of granting an automatic 50 per cent. community charge rebate(a) to all retirement pensioners and (b) to pensioners over the age of 75 years.
§ Mr. Chope[holding answer 5 June 1990]: Many pensioners are already entitled to reductions in their community charge through the transitional relief scheme or community charge benefit or both. Many of these already pay less than 50 per cent. of the full charge. The cost of allowing all pensioners who currently pay more than 50 per cent. a reduction to 50 per cent. in 1990–91 is estimated at about £600 million. Of this, about £200 million is for pensioners aged over 75.
§ Mr. HawkinsTo ask the Secretary of State for the Environment what would be the cost of basing transitional relief for the community charge, for a full financial year, on(a) £56 and (b) £106, in place of the limit of £156.
§ Mr. Chope[holding answer 5 June 1990]: It is estimated that the transitional relief scheme will provide £350 million of relief in 1990–91. This is based on a threshold of £156, equivalent to £3 per week. Reducing the threshold to £2 per week would increase the estimated cost to £570 million; and reducing the threshold to £1 per week would cost £900 million.
§ Mr. ChurchillTo ask the Secretary of State for the Environment what estimate he has made of the cost of granting exemption from the community charge for mothers with a child(a) under the age of five years and (b) under the age of 10 years.
§ Mr. Chope[holding answer 5 June 1990]: Assuming an average personal community charge of £363, it is estimated that exempting mothers with children under five from the community charge would mean a revenue loss of £0.8 billion and exempting mothers with children under 10 years of age would mean a revenue loss of £1.4 billion.