HC Deb 21 January 1997 vol 288 cc521-2W
Ms Lynne

To ask the Secretary of State for the Environment, pursuant to his answer of 17 December to the hon. Member for Portsmouth, South (Mr. Martin)Official Report, column 551, on changes to the payment of council tax for granny annexes, what estimate he has made of (a) the number of elderly and disabled people who will gain financially from the changes, (b) the number of households which will face a higher council tax banding following the changes and (c) the total fall in income for local councils from the changes; and what plans he has to compensate local councils for the fall in income. [11430]

Sir Paul Beresford

We estimate that up to 50,000 dwellings will be removed from valuation lists as a result of this measure, with an offsetting one-band increase in

Mid-year population estimates
Local Authority June 1986 June 1987 June 1988 June 1989 June 1990 June 1991 June 1992 June 1993 June 1994
Gateshead 206,294 205,653 204,784 204,132 203,146 203,078 203,072 202,850 202,444
Newcastle 282,401 283,719 280,834 278,825 278,996 278,161 281,706 285,310 283,556
North Tyneside 194,338 195,346 195,809 196,078 195,548 195,456 195,166 194,751 194,082
South Tyneside 157,120 156,575 156,148 156,314 156,638 157,210 157,290 157,200 156,665
Sunderland 297,815 297,156 296,188 296,360 296,310 296,446 297,147 297,806 297,226

Source:

NOMIS.

Household projections (Mid-year estimates)
11981 11991 11992 11993 21994 21995 11996 12016
Gateshead 81,000 84,000 84,000 85,000 85,000 86,000 86,000 94,000
Newcastle 110,000 117,000 119,000 121,000 120,500 120,600 123,000 137,000
North Tyneside 77,000 82,000 83,000 83,000 83,400 84,100 84,000 89,000

banding in around one quarter of cases. This would reduce the tax yield by around £15 million to £20 million, or less than 0.2 per cent. We do not expect the impact on local authorities to be significant. None the less, future rate support grant settlements will take into account the change in yield.