§ Mr. Andrew GeorgeTo ask the Secretary of State for the Environment, Transport and the Regions (1) what levels of payment have been made to local authorities to recompense them through the premium support grant for the 50 per cent. council tax discount given to(a) second homes and (b) other domestic properties entitled to the 50 per cent. discount, in each of the last three years; [110203]
(2) what recompense has been paid to local authorities through the revenue support grant for the loss of income due to the 50 per cent. council tax discount for second homes, (a) by district and (b) by county and unitary authority in each of the last three years. [110205]
§ Ms Beverley HughesThere is no distinct element of the Revenue Support Grant to recompense authorities for council tax discounts they are required to give. However, the definition of the tax base used in the calculation of Revenue Support Grant normally has the effect of increasing an authority's grant by an amount broadly similar to the discounts. It will not be exactly the same as the discounts because the taxbase is based on information available before the year in which the discounts are given, the tax base is based on 100 per cent. collection, and the grant calculation uses a national tax rate rather than the actual tax rate.
The Department does not have information distinguishing 50 per cent. discounts on second homes and 50 per cent. discounts for other reasons. We will place tables in the Library shortly based on all 50 per cent. discounts.