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Domestic And Industrial Rates

Volume 984: debated on Tuesday 6 May 1980

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asked the Secretary of State for the Environment what is the total value of domestic and industrial rates; and what increase in the standard rate of income tax would be required to raise this sum.

Rates from all sectors raised about £6·8 billion in the United Kingdom in 1979–80. This would have been equivalent to the revenue in that year from about an additional 14p on the basic rate of income tax.

asked the Secretary of State for the Environment (1) what study he has made of the numbers of people who would be available for other duties if domestic rates were abolished;(2) what study he has made of the numbers of people who would be available for other duties if domestic and industrial rates were abolished.

We are currently reviewing alternatives to domestic rates. One aspect that has to be considered is the administrative cost and manpower that would be needed for any new local tax, and the offsetting savings there would be on the rating side. We are not considering the abolition of non-domestic rates, and are not making any studies of the implications of doing so.