HC Deb 25 January 1996 vol 270 cc367-8W
Mr. Pike

To ask the Secretary of State for the Enviornment how much each local authority took from balances to fund budget expenditure in 1995–96. [11596]

Sir Paul Beresford

I have placed the information in the Library of the House.

Mr. Dobson

To ask the Secretary of State for the Enviornment what would be the effect of an 8 per cent. increase in council tax on(a) the total yield of council tax in Great Britain, (b) the total yield of council tax in England, (c) the council tax bill in England for each valuation band, (d) the average council tax in England, expressed as the total yield from the council tax divided by the total number of chargeable dwellings, (e) council tax benefit, (f) the retail price index and (g) index-linked benefits. [11728]

Mr. Gummer

The information relating to Wales and Scotland is the responsibility of my right hon. Friends the Secretaries of State for Wales and for Scotland.

If council taxes in England had increased in 1995–96 by an additional 8 per cent. compared to actual levels, the approximate effect is estimated as follows:

  1. (b) the gross yield of council tax would increase by £780 million;
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  2. (c) average council tax levels, before council tax benefit or transitional relief, would increase
    • Band A: by £32 to £439
    • Band B: by £38 to £512
    • Band C: by £43 to £585
    • Band D: by £49 to £658
    • Band E: by £60 to £804
    • Band F: by £70 to £950
    • Band G: by £81 to £1,096
    • Band H: by £97 to £1,316
  3. (d) the average bill per chargeable dwelling, before council tax benefit or transitional relief, would increase by £40 to £538;
  4. (e) council tax benefit would increase by £170 million;
  5. (f) the increase would add around 0.2 percentage points to the percentage change over 12 months in the all items retail prices index.
  6. (g) the precise effect on those benefits linked to the retail prices index would depend on whether this marginal change resulted in benefit levels moving up or staying unchanged. As an approximate guide, an additional 0.2 percentage points on the rate of inflation would add around £80 million to the cost of those benefits in a full year. There would be no effect on those income related benefits which are usually linked to the Rossi index.