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Domestic Rates

Volume 114: debated on Wednesday 8 April 1987

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asked the Secretary of State for Scotland if he will estimate how the current product of domestic rates in Scotland and in each of the regions in Scotland might be raised through community charge or local income tax with and without resource equalisation in the cases of (a) a single person on 75 per cent. and 100 per cent. of an average manual workers wage, (b) a married man on 75 per cent. and 100 per cent. of an average manual worker's wage, whose wife's earnings are an average for women in full-time employment, (c) a married man with earnings as in case (a) whose wife's earnings are the average for women in part-time employment, (d) a married man with earnings as in case (a) whose wife has no income, (e) a married couple, as in case (d) living with a son or daughter over 8 years of age, whose income is the average for the 18 to 25 year age group in Scotland and (f) a married couple as in case (d) living with an unemployed son or daughter between 18 and 25 years of age, indicating how these calculations were made.

(a) A single person on 75 per cent, and 100 per cent, of average earnings for a full-time male adult manual worker in Scotland
AreaCommunity chargesEqualised local income taxUnequalised local income tax
(£)75 per cent. (£)100 per cent. (£)75 per cent. (£)100 per cent. (£)
Borders158181272130196
Central187214323269405
Dumfries and Galloway155176266164247
Fife210244367181272
Grampian157181272130196
Highland153176266134203
Lothian225260393315475
Strathclyde229265399277418
Tayside194223336273412
Scotland207239361235355
(b) A married man with earnings as in case (a), whose wife's earnings are the Scottish average for adult women in full-time employment
AreaCommunity chargesEqualised local income taxUnequalised local income tax
(£)75 per cent. (£)100 per cent. (£)75 per cent. (£)100 per cent. (£)
Borders316298390215281
Central374354463444581
Dumfries and Galloway310291381270354
Fife420402526298390
Grampian314298390215281
Highland306291381222290
Lothian450430562520680
Strathclyde458437571458599
Tayside388368481451590
Scotland414395517388508
(c) A married man with earnings as in case (a) whose wife's earnings are the average for adult women in part-time employment
AreaCommunity chargesEqualised local income taxUnequalised local income tax
(£)75 per cent. (£)100 per cent. (£)75 per cent. (£)100 per cent. (£)
Borders316147238106172
Central374174283218355
Dumfries and Galloway310143233133216
Fife420198322147238
Grampian314147238106172
Highland306143233109177
Lothian150211344256416
Strathclyde458215349225366
Tayside388181294222360
Scotland414194316191311
(d) A married man with earnings as in case (a) whose wife has no income.
AreaCommunity chargesEqualised local income taxUnequalised local income tax
£75 per cent. £100 per cent. £75 per cent. £100 per cent. £
Borders31612721991158
Central374150259189325
Dumfries and Galloway310124213115198
Fife420171295127219
Grampian31412721991158
Highland30612421394163

The estimated average local tax bills under the community charge system and under a local income tax system and without resource equalisation needed to replace domestic rates in 1985–86, are given for the specific cases requested.

Area

Community charges

Equalised local income tax

Unequalised local income tax

£

75 per cent. £

100 per cent. £

75 per cent. £

100 per cent. £

Lothian450183315221381
Strathclyde458186320195335
Tayside388156269192330
Scotland414168290165285

(e) A married couple as in (d) living with a son or daughter over 18 years of age whose income is the average for full-time workers in the 18 to 24 year age group

Area

Community charges

Equalised local income tax

Unequalised local income tax

£

75 per cent. £

100 per cent. £

75 per cent. £

100 per cent. £

Borders474292384211277
Central561346455435571
Dumfries and Galloway465285375265348
Fife630394518292384
Grampian471292384211277
Highland459285375217286
Lothian675421553509669
Strathclyde687428562448589
Tayside582360473441580
Scotland621387509380500

(f) A married couple as in case (d) living with an unemployed son or daughter between 18 and 24 years of age.

Area

Community charges (rebated)

Equalised local income lax

Unequalised local income tax

£

75 per cent. £

100 per cent. £

75 per cent. £

100 per cent. £

Borders42912721991158
Central488150259189325
Dumfries and Galloway422124213115198
Fife543171295127219
Grampian43012721991158
Highland41912421394163
Lothian574183315221381
Strathclyde584186320195335
Tayside507156269192330
Scotland536168290165285

Notes:

(1) The average community charges for 1985–86 used in the tables were published in the Official Report on 20 February 1986.

(2) The underlying local income tax rates (with resource equalisation) have been estimated on the assumption that some form of resource equalisation would make the yield of 1p in the pound the same per adult in all areas.

(3) Published information on taxable resources in local authority areas is only available up to 1982–83. The sample size is small and the regional pattern shows considerable variation from year to year. Estimates of local income tax rates without resource equalisation are therefore subject to some uncertainty. Those in the table have been produced by applying the pattern of unequalised tax rates calculated for 1982–83 to 1985–86 average earnings.

(4) Estimates of average gross earnings have been taken from the 1985 "New Earnings Survey". The average figures for Scotland have been used in each case with the exception of average earnings for the 18 to 24 year age group, where only Great Britain figures were readily available.

(5) In applying local income tax rates to cases (a) to (f) it is assumed that earnings are the only sources of income and that only personal tax allowances apply.

(6) In case (f) it has been assumed that the unemployed son or daughter will be in receipt of unemployment benefit.