Council Tax (Hansard, 26 February 1996)

§ Mr. Dobson
To ask the Secretary of State for the Environment what is for 1995–96 and 1996–97(a) the planned council tax yield for England, consistent with chapter 4 of HC30, (b) the level of those grants which, 418W together with council tax, fund local authority budget requirements in England as defined for 1996–97, individually and in aggregate, including within 1995–96, community care grant transferred into revenue support grant in 1996–97, and adjusting for changes in functions and (c) the sum of (a) and (b). [17033]

§ Mr. Gummer
The Government do not set plans for the yield of council tax, which depends on decisions made by individual authorities.

£ Million

1995–96 1996–97

(a) Estimated effect of those decisions on council tax yield, consistent with HC30, gross of council tax benefit 9,780 10,574

(b) External sources of finance to the budget requirement, consistent with HC30 33,610 34,120

Of which, grants:

Revenue support grant to local authorities ¹18,952 17,999

Police grant (principal formula and additional rule 1) 3,036 3,158

SSA reduction grant 261 220

Other external sources of finance:

Non-domestic rates 11,354 12,736

City offset 7 7

(c) The sum of (a) estimated council tax yield and (b) external support 43,390 44,694

¹Includes £648 million community care grant, and £34 million adjustment for metropolitan rail services, net of £26 million for waste regulation transfer.

§ Mr. Dobson
To ask the Secretary of State for the Environment what calculations underlay his Department's estimate that the planned proportion of local authority expenditure funded by council tax would increase to 26 per cent. by 1998–99. [17129]

§ Mr. Gummer
The public expenditure plans for local government for 1997–98 and 1998–99 were announced at the time of my right hon. and learned friend the Chancellor's November 1995 Budget Statement. Under these proposals, aggregate external finance—AEF—would increase from £34.69 billion in 1995–96 to £35.70 billion in 1998–99 to support total standard spending, TSS, which would increase from £43.46 billion to £46.30 billion. The Government have assumed that the difference between these two aggregates could be met through local authorities' own resources, primarily the council tax. Our best current estimate is that this would imply that the proportion of TSS funded by council tax would increase from 20 to 23 per cent. between 1995–96 and 1998–99. Decisions on levels of council tax and therefore on the proportion of services funded locally are, subject to capping, for local authorities themselves.

£ Million
	1995–96	1996–97
(a) Estimated effect of those decisions on council tax yield, consistent with HC30, gross of council tax benefit	9,780	10,574
(b) External sources of finance to the budget requirement, consistent with HC30	33,610	34,120
Of which, grants:
Revenue support grant to local authorities	¹18,952	17,999
Police grant (principal formula and additional rule 1)	3,036	3,158
SSA reduction grant	261	220
Other external sources of finance:
Non-domestic rates	11,354	12,736
City offset	7	7
(c) The sum of (a) estimated council tax yield and (b) external support	43,390	44,694
¹Includes £648 million community care grant, and £34 million adjustment for metropolitan rail services, net of £26 million for waste regulation transfer.