Local Government Finance (Hansard, 27 March 1991)

§ 29. Mr. Adley
To ask the Secretary of State for the Environment if he will make it his policy to seek a form of local government taxation that costs the least amount to raise and to administer.

§ Mr. Portillo
As my right hon. Friend made clear in his statement to the House on 21 March, ease of collection is one of the principles underlying our proposals for a new local tax.

§ 30. Mr. Barron
To ask the Secretary of State for the Environment if he will make a statement on his study of reforms of the community charge; and if he will make a statement.

§ Mr. Key
I have nothing to add at this stage to my right hon. Friend's statement to the House on 21 March.

§ 31. Mr. Carr
To ask the Secretary of State for the Environment what representations he has received about the Government's review of the poll tax.

Government Grants to Local Authorities

Additional grant needed to bring percentage to 1978–79 level

Government grants¹as a percentage of local authority expenditure Cash Real terms (1978–79 prices)

Per cent. £ billion £ billion

1978–79² 61 0 0

1979–80² 59 0.36 0.31

1980–81² 59 0.54 0.39

1981–82 55 1.21 0.80

1982–83 52 1.96 1.21

1983–84 52 2.12 1.25

1984–85 52 2.15 1.21

1985–86 51 2.35 1.25

1986–87 48 3.51 1.81

1987–88 46 4.12 2.01

1988–89 44 5.13 2.33

1989–90 42 6.22 2.66

1990–91 38 8.10 3.21

1991–92 51 3.94 1.46

¹For the years 1978–89 to 1989–90 Government grants comprises aggregate Exchequer grant and rate rebate grants (excluding domestic rate rebates). For 1990–91 Government grants include revenue support grant, special grants, specific grants in aggregate external finance and transitional relief grant, but excludes community charge benefits. Government grants for 1991–92 are the same as 1990–91 except for the addition of Community charge grant.

²England and Wales—Community charge payers receive additional help through community charge benefit. In 1991–92 this is likely to be worth £1 billion (over £2.5 billions in 1978–79 prices).

§ Mr. Fisher
To ask the Secretary of State for the Environment what he estimates will be the cost to local authorities of the delay in sending out community charge invoices in the current year.

§ Mr. Key
[holding answer Tuesday 26 March 1991]: None. The profile of payments to local authorities from the distributable amount of the non-domestic rate will be changed to increase the amounts paid in the early months of 1991–92. This will compensate authorities for the temporary cash shortfall likely to result from the proposals in the Community Charges (General Reduction) Bill and related measures.

Government Grants to Local Authorities
		Additional grant needed to bring percentage to 1978–79 level
	Government grants¹as a percentage of local authority expenditure	Cash	Real terms (1978–79 prices)
	Per cent.	£ billion	£ billion
1978–79²	61	0	0
1979–80²	59	0.36	0.31
1980–81²	59	0.54	0.39
1981–82	55	1.21	0.80
1982–83	52	1.96	1.21
1983–84	52	2.12	1.25
1984–85	52	2.15	1.21
1985–86	51	2.35	1.25
1986–87	48	3.51	1.81
1987–88	46	4.12	2.01
1988–89	44	5.13	2.33
1989–90	42	6.22	2.66
1990–91	38	8.10	3.21
1991–92	51	3.94	1.46
¹For the years 1978–89 to 1989–90 Government grants comprises aggregate Exchequer grant and rate rebate grants (excluding domestic rate rebates). For 1990–91 Government grants include revenue support grant, special grants, specific grants in aggregate external finance and transitional relief grant, but excludes community charge benefits. Government grants for 1991–92 are the same as 1990–91 except for the addition of Community charge grant.
²England and Wales—Community charge payers receive additional help through community charge benefit. In 1991–92 this is likely to be worth £1 billion (over £2.5 billions in 1978–79 prices).