HC Deb 23 April 1991 vol 189 cc391-2W
Mr. Andy Stewart

To ask the Secretary of State for the Environment if he will set out the budgeted revenue expenditure and sources of income for local authorities in England, and their implication for community charge levels, in 1990–91 and 1991–92, before and after the enactment of the Community Charges (General Reduction) Act 1991.

Mr. Portillo

Following the Community Charges (General Reduction) Act 1991, the average community charge actually paid in 1991–92, taking account of assistance received via income support, is estimated to be £172; charges will account for just less than 15 per cent. of authorities' revenue spending. The corresponding figures before the Act were £274 and 23.6 per cent. respectively; for 1990–91 they were £285 and 26.6 per cent. Full details are given in the table.

Sources of finance for local authority expenditure: England 1990–91 and 1991–92
1990–91 1991–92 before £140 reduction 1991–92 after £140 reduction
Estimated expenditure/income (£ billion)
Gross revenue/budgeted expenditure 36.48 39.82 39.82
Use of balances 0.80 0.62 0.62
Budgeted income 35.68 39.19 39.19
Less Aggregate Exchequer Finance 23.29 26.05 30.88

1990–91 1991–92 before £140 reduction 1991–92 after £140 reduction
Plus/minus adjustments1 0.14 0.35 0.35
Raised from gross charges 12.25 13.49 8.66
Percentage of expenditure 33.60 33.90 21.70
HEADLINE CHARGE (£) 357.00 392.00 252.00
Less: Reduction scheme grant 0.26 1.70 1.25
Estimated community charge benefit subsidy 1.83 1.92 1.06
Raised from net charges 10.16 9.87 6.35
Percentage of expenditure 27.90 24.80 15.90
Less income support2 0.40 0.43 0.43
Actual charges paid 9.76 9.44 5.92
Percentage of expenditure 26.60 23.70 14.90
AVERAGE CHARGE ACTUALLY PAID (£)
(taking into account income support) 285 274 172
Aggregate Exchequer Finance (£ billion)
Business rates 10.428 12.408 12.408
Specific grants 3.189 3.413 3.413
Special grants 0.187 0.555 0.555
Revenue Support Grant 9.490 9.674 9.674
Community charge grant — — 4.830
Total grants 12.866 13.642 18.472
Total AEF 23.294 26.050 30.880
Chargepayers (million)
Relevant population3 35.65 35.54 35.54
Equated population4 34.37 34.50 34.50
1 Adjustments include RSG grants to specified bodies (which are part of AEF but do not go to local authorities); net interest payments by the Collection Fund; the proportion of non-domestic rates collected by the City of London which is retained by the authority's collection fund; the estimated deficit on the Collection Fund in 1990–91; and the budgeted surplus on the Collection Fund in 1991–92.
2 This amount represents the allowance in income support to cover 20 per cent, of the average charge.
3 Relevant population indicates the number of chargepayers subject to a full community charge, plus one fifth of students subject to a charge, plus the number of people liable to pay collective community charges.
4 Equated population is the equivalent number of personal charges which local authorities expect to receive from personal, standard and collective chargepayers.