HC Deb 04 December 2002 vol 395 cc881-3W
Mr. Clifton-Brown

To ask the Deputy Prime Minister by how much total expenditure would be increased if all parish and town councils in England increased the maximum £3.50 per elector multiplier as specified in section 137(4) of the Local Government Act 972 up to £5.00 as specified in the draft Local Government Bill; and by how much audit best value and other compliance costs for parish and town councils lave increased in each of the last two years. [84421]

Mr. Leslie

The maximum expenditure by English parish and town councils currently permitted under section 137(4) of the Local Government Act 1972 is estimated to be about £45 million per year. It is estimated that this would increase to about £65 million per year as a result of the maximum amount increasing from £3.50 to £5.00 per elector.

Not all parish and town councils make full use of the existing £3.50 amount, but we are increasing it because t has been in place since 1990, and consultation responses to the "Modernising Local Government "Finance" green paper have shown that it has been inhibiting expenditure for some councils.

The Office of the Deputy Prime Minister does not hold information on the total cost of financial audit for parish and town councils. For parish councils, the Audit Commission's 'lighter touch' regime aims to develop a proportionate audit approach as well as a reduction in audit fees for most councils.

The exact costs of best value are not known. However, the duty of best value should not have added excessive costs when a council is well organised and managed. Any additional costs should have been offset by gains in economy, efficiency and effectiveness and by the new opportunities provided by innovative service delivery through for example by partnership arrangements. Councils would have been free to plough back the savings made into core and other services.

Moreover, the Government announced in the local government white paper "Strong Local Leadership—Quality Public Services" that it will pay a grant of £30,000 per year to Best Value Town and Parish Councils to cover the costs of audit and the corporate costs of carrying out work relating to best value, such as preparation of performance plans and the management of reviews.

No other compliance costs for parish and town councils are believed to have increased in the last two years.

Lynne Jones

To ask the Deputy Prime Minister what plans he has to allow local authorities to charge a punitive level of council tax on long-term voids. [84968]

Mr. Leslie

On 19 November, my right hon. Friend the Member for Greenwich and Woolwich (Mr. Raynsford) announced we would be giving English local authorities the discretion to reduce or remove the current 50 per cent, council tax discount on long-term empty property. The Office of the Deputy Prime Minister has included the necessary provision in the Local Government Bill and, subject to parliamentary approval, we aim to implement this change on 1 April 2004.

We have no plans to allow local authorities to charge more than the full council tax.

Mr. Reed

To ask the Deputy Prime Minister what representations he has received about removing council tax exemption to student houses in multi-occupancy; and if he will make a statement. [85029]

Mr. Leslie

Since August 2001, the Office of the Deputy Prime Minister has received 12 representations from members of the public about the council tax exemption for premises occupied by students. Nine of those believed that landlords should be made liable for the council tax in properties occupied only by students, while three suggested that students should be made liable for the council tax.

The Office of the Deputy Prime Minister has no plans to change or remove the exemption from council tax of dwellings occupied only by students.

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