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June 1989

"You and the Community Charge :

Rebates"

Copies of these publications are available free of charge from Room P1/163, Department of the Environment, 2 Marsham Street, London SW1P 3EB.

Mr. Austin Mitchell : To ask the Secretary of State for the Environment whether he will publish in the Official Report a table showing for each region the number of rated domestic premises in 1988-89, the estimated rate yield based on a charge of 1 per cent. of the capital value and the estimated cost of a rate-free deduction of, respectively, £10,000 per dwelling, £5,000 for each resident member as defined for electoral purposes, and £5,000 for each dependent resident.

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Mr. David Hunt [holding answer 27 July 1989] : The table provides the information requested. Column 1 shows the number of domestic hereditaments as at 1 April 1988. Column 2 shows the yield from a 1 per cent. capital value tax, where the capital value is estimated by multiplying the average price for each region by the number of domestic hereditament properties. The average house price in each region was taken from the survey of building society mortgages. The costs of the three types of rate deduction are given in the following three columns. They are calculated by taking 1 per cent. of the products of :

(1) The number of hereditaments over £10,000.

(2) The 18-year-old and over population in each area and £5,000. (3) The under 18-year-old population in each area and £5,000.

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Estimated yield from 1 per cent. capita value rate and costs for various deductions

|Domestic hereditaments   |Yield from 1 per cent.   |Cost of £10,000 rate free|Cost of £5,000 rate free |Cost of £5,000 rate free

|capital value rate       |per hered                |per adult                |per child

|(000's)

|Column 1                 |Column                   |Column 3                 |Column 4                 |Column 5

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Northern Region           |1,233                    |420                      |123                      |379                      |114

North West Region         |2,449                    |975                      |250                      |946                      |297

Yorkshire and Humberside  |1,936                    |783                      |194                      |759                      |234

East Midlands Region      |1,550                    |768                      |155                      |302                      |92

West Midlands Region      |1,999                    |1,039                    |200                      |694                      |219

East Anglia Region        |799                      |574                      |80                       |154                      |47

South East Region         |4,078                    |3,624                    |408                      |811                      |244

South West Region         |1,810                    |1,221                    |181                      |357                      |101

Greater London Region     |2,792                    |2,459                    |279                      |1,162                    |331

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Mr. Squire : To ask the Secretary of State for the Environment if he has any plans to announce a minimum threshold percentage of eligible residents registered for the community charge prior to exercising his powers of central control.

Mr. David Hunt : My right hon. Friend the Member for Suffolk, Coastal (Mr. Gummer) explained in his answer of 25 July to my hon. Friend the Member for Derby, North (Mr. Knight) that where there is doubt as to whether community charge register data give a realistic estimate of an area's adult population, we propose to adopt an alternative for the purpose of calculating the relevant population to be used for distributing grant and business rates. We will be discussing with the local authority associations the criteria which might be used to identify doubtful cases.

Mr. Chris Smith : To ask the Secretary of State for the Environment if he will indicate the detailed components used in calculating the expenditure needs of each local authority in England and Wales, and the method then used in establishing supposed overspending, in arriving at the indicative community charge figures given to the House on 19 July.

Mr. David Hunt : The method used to calculate the overspending figures contained in the table showing illustrative 1989-90 community charges is detailed in the explanatory notes accompanying that table.

Overspending was measured by comparison with grant related expenditure (GRE) assessment. The components used in calculating GRE's are set out in the Department's publication "The Technical Handbook of Grant-Related Expenditure 1989-90" which is available in the Library.

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Mr. Clelland : To ask the Secretary of State for the Environment what are the assumed contributions, in cash terms, to local expenditure for each authority from (a) Government sources and (b) business rates in the tables contained in the document, "1989-90 Illustrative Capital Value Rates and Local Income Tax", published on 19 July.

Mr. David Hunt : I refer the hon. Member to the replies given to him and to the hon. Member for Leyton (Mr. Cohen) on 25 July. Since data are not available for each local authority on either the capital value of domestic properties or on the taxable income of residents, I cannot provide the information requested.

Mr. Clelland : To ask the Secretary of State for the Environment (1) what was the total cost, in cash terms, of producing, printing and distributing the document, "1989-90 Illustrative Capital Value Rates and Local Income Tax" which was published on 19 July ; (2) what was the total cost, in cash terms, of producing, printing and distributing the 22-sheet document, "Department of the Environment 1989-90 Illustrative Community Charges."

Mr. David Hunt : I refer the hon. Member to the reply given by my right hon. Friend the Member for Cirencester and Tewkesbury (Mr. Ridley) to the hon. Member for The Wrekin (Mr. Grocott) on 24 July. The cost of providing sufficient copies for the Vote Office, the local authority associations and others is estimated to have been about £600. The 22- page document headed "Department of the Environment 1989-90 Illustrative Community Charges" included details of the

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impact of capital value rates combined with a local income tax. The document was distributed through the Department's normal channels.

Mr. Shersby : To ask the Secretary of State for the Environment when he intends to announce details of the

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rebate of up to 80 per cent. of the community charge to be made available to persons on low incomes ; and when information on how to apply for such rebates will be sent to local authorities.

Mr. David Hunt : I will write to my hon. Friend.