HC Deb 07 May 1991 vol 190 cc401-2W
Mrs. Ann Winterton

To ask the Secretary of State for the Environment by how much in real terms, and taking account of any changes in responsibilities, the total income of local authorities increased in the first year of operation of the community charge as against the last year of the rating system; and what steps he is taking to ensure that there is no similar increase in the first year of operation of the council tax.

Mr. Key

Total demands and precepts in 1990–91, after capping, showed an increase of 15.1 per cent. in cash terms over adjusted net revenue income in 1989–90, a real terms increase of 6.7 per cent. The Government have said that they will ensure, through capping, that the substantial increase in spending which accompanied the transition to the community charge is not repeated.

Mr. Hardy

To ask the Secretary of State for the Environment if he will make it his policy that calculation of the central provision of support for local authority expenditure should, from 1992, include economic and employment factors to reflect the particular needs of localities facing above average need.

Mr. Key

My right hon. Friend will make known his proposals for the distribution of revenue support grant for 1992–93 in the autumn. The consultation paper about the new council tax, issued on 23 April, made it clear that the Government are not proposing any major changes to the present standard spending assessments which are based on extensive research.