HC Deb 28 March 1991 vol 188 cc518-9W
Mr. Peter Bottomley

To ask the Chancellor of the Exchequer how much the tax on petrol would have to be increased to raise the amount equivalent to the community charge necessary to fund local authority spending up to standard assessment.

Mrs. Gillian Shephard

[holding answer 27 March 1991]: As set out in table 6.9 of the "Financial Statement and Budget Report", the net yield of the community charge in 1991–92 is now forecast to be £7.2 billion. Calculated on a basis consistent with the ready reckoner published in the 1990 autumn statement—table 4.7—an additional yield of £7.2 billion in 1991–92 would require an increase in petrol duties of around 92 per cent. However, this estimate is subject to considerable uncertainty about the extent to which such a large increase in duties would induce consumers to switch between different categories of expenditure.