HC Deb 10 June 2003 vol 406 cc746-7W
Matthew Taylor

To ask the Chancellor of the Exchequer pursuant to the answers of 27 March 2003,Official Report, columns 335–36W, on council tax, if he will update his answers using the effects of taxes and benefits on household income 2001–02. [118271]

John Healey

The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter from Len Cook to Matthew Taylor, dated 10 June 2003: As National Statistician. I have been asked to reply to your recent question asking for an update for 2001–02 of the figures for council tax given in the previous answer of 27 March 2003 for 2000–01. (118271) Estimates for council taxes and income are based on the analysis "The effects of taxes and benefits on household income 2001–02" produced by the ONS and published on the National Statistics website on 11 April 2003 and in Economic Trends in the May 2003 edition. The analysis can be obtained from the House of Commons Library. This includes measures of income inequality for the United Kingdom as a whole based on data from the Expenditure and Food Survey. The following table shows the estimated gross and net council tax for all households in Great Britain and (a) England, (b) Scotland and (c) Wales, for each income quintile where households are ranked by equivalised disposable income. The net council tax figures are gross council tax less benefits and discounts. The table also shows the equivalised disposable income quintile point boundaries, which have been calculated separately for Great Britain and each country. For example, the first quintile point for each country is the income below which one fifth of households in that country are estimated to lie.

Council tax as a percentage of gross income, 2001–02
Great Britain Percentages
Quintile groups of all households ranked by equivalised disposable income
Bottom Second Third Fourth Top All households
Quintile points (equivalised disposable income, £ per year)
Great Britain 10,448 14,822 20,138 28,746
England 10,578 15,006 20,548 29,269
Scotland 9,846 13,574 18,404 26,409
Wales 9,934 14,174 18,259 25,245
Gross council tax
Great Britain 7.1 4.4 3.1 2.3 1.4 2.5
England 7.1 4.3 3.0 2.2 1.3 2.5
Scotland 8.4 5.3 3.8 3.0 2.1 3.4
Wales 6.2 3.4 2.6 2.1 1.4 2.3
Net council tax1
Great Britain 4.7 3.3 2.8 2.2 1.4 2.2
England 4.6 3.3 2.8 2.2 1.3 2.1
Scotland 5.0 4.0 3.3 2.9 2.1 2.9
Wales 4.2 2.5 2.4 2.0 1.3 2.0
1 Net council taxes after deducting benefits and discounts.

Source:

Office for National Statistics, based on the analysis "The effects of taxes and benefits on household income' published on the ONS website and in Economic Trends No. 594 May 2003