HC Deb 28 January 1991 vol 184 cc388-90W
Mr. Beith

To ask the Chancellor of the Exchequer what are the Treasury's current assumptions on the level of local government current spending in England, Scotland and Wales in 1991–92, showing how much of this is financed by central Government grant, non-domestic rates and community charge, both gross and net of rebates, indicating the assumed default rate for community charge.

Mr. Mellor

[holding answer 24 January 1991]: No assumptions have been made about the level of local authority current spending in 1991–92. But the Government have given an indication of the amount of revenue expenditure they believe would be appropriate for that year (total standard spending in England and Wales, and Government-supported expenditure in Scotland). The table shows this spending, together with the planned level of aggregate external finance, split into grant and non-domestic rate payments.

£ million
England Scotland Wales
Total Standard Spending1 39,000 5,447 2,433
Financed by:
—Aggregate External Finance 26,050 4,353 1,936
of which
Non-domestic rates 12,408 1,347 525
Grant 13,642 3,006 1,411
—Community charge (gross) 12,950 1,094 497
1 Government Supported Expenditure in Scotland.

These calculations do not require any assumption about non-collection of the community charge. The latest estimate of the cost of community charge benefit in 1991–92 in Great Britain is just over £2 billion.

Mr. Blunkett

To ask the Chancellor of the Exchequer, pursuant to his answer of 17 January to the hon. Member for Gedling (Mr. Mitchell),Official Report, column 562, what are his estimates of the savings on community charge benefit in 1991–92 as a result of the introduction of the community charge reduction scheme.

Mr. Mellor

[holding answer 24 January 1991]: Some £300 million.

Mr. Ralph Howell

To ask the Chancellor of the Exchequer if he will tabulate, giving the date and amount in each case, any funds which the Treasury has made available to lessen the impact of the community charge since its inception and the total cost to date.

Mr. Mellor

[holding answer 21 January 1991]: Table 21.4.2 of the Government's expenditure plans 1990–91 to 1992–93 (Cm. 1021) details transitional grants in Great Britain which have been made available as part of the introduction of the new local government finance regime. Table 21.4.4 shows funding under the community charge benefit scheme. Updated tables are due to be published in early February in the supplement to the autumn statement. Announcements to date have been:

  • April 1989
  • Adjustment to income related benefits to assist community charge payments £500 (GB).
  • 19 July 1989
  • Inner London education Grant 1990–91 £100 million.
  • Low rateable value areas grant 1990–91 £100 million.
    • 390
  • 11 October 1989
  • Low rateable value areas grant to be aggregated wit h Area protection grant from 1991–92 onwards. 1991–92 £400 million, 1992–93 £200 million, 1993–94 £85 million (England).
  • Transitional relief scheme for chargepayers, 1990–91 £300 million (England).
  • Community charge benefit for 1990–91 £2 billion.
  • Other income related benefits £0.5 billion.
  • 6 November 1989
  • Transitional relief scheme (Wales) for 1990–91 £17.5 million.
  • 13 November 1989
  • Additional grant of £30 million for Scotland 1990–91 to protect against withdrawal of the safety net.
  • 19 July 1990
  • Transitional relief scheme for 1991–92 raised from £260 million to £570 million (England).
  • 23 July 1990
  • Transitional relief (Wales) for 1991–92 and 1992–93 to be £20 million.
  • 25 July 1990
  • Additional area protection grant (Scotland) for 1991–92 £15 million.
  • 17 January 1991
  • Community charge reduction scheme. Additional funding 1991–92 of £1,200 million (England), £65 million (Scotland) and £42 million (Wales).

Back to