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Rates

Volume 115: debated on Tuesday 5 May 1987

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asked the Secretary of State for Scotland what estimate he has as to how the current produce of domestic rates in Scotland and in each of the regions of 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 (i) 100 per cent., (ii) 90 per cent., (iii) 75 per cent. and (iv) 60 per cent. of the average male manual worker's wage for Scotland, (b) a married man with earnings as in (a) above, whose wife earns 50 per cent. of the average for women in full-time employment, (c) a married man with earnings as in (a) above, whose wife earns 50 per cent. of the average for women in part-time employment and (d) a married man as in (c) above, living with three sons or daughters aged 18 to 24 years all of whom earn the average for full-time workers in the 18 to 24 age group.

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

Area

Community charge

Equalised Local Income Tax

Unequalised Local Income Tax

100 per cent.

90 per cent.

75 per cent.

60 per cent.

100 per cent.

90 per cent.

75 per cent.

60 per cent.

£

£

£

£

£

£

£

£

£

(a) A single person earning 100 per cent., 90 per cent., 75 per cent., 60 per cent, of average manual earnings

Borders15827223818112519617013090
Central187323282214149405351269187
Dumfries and Galloway155266234176123247214164114
Fife210367317244169272236181125
Grampian15727223718112519617013090
Highland15326623117612320317513493
Lothian225393339260181475411315219
Strathclyde229399345265184418362277193
Tayside194336292223155412356273190
Scotland207361312239166355307235163

(b) A married man with earnings as in (a) above, whose wife earns 50 per cent, of the average for woman in full-time employment

Borders31625722316511018615911980
Central374304264195130382328246164
Dumfries and Galloway310250219161107233200140100
Fife420347296223149257220165110
Grampian31425722116511018615911980
Highland30625021616110719216412382
Lothian450370317238158448384288192
Strathclyde458376323242161394338254169
Tayside388316274203135388333250166
Scotland414341292219146335287215143

(c) A married man as in (a) above whose wife earns 50 per cent, of the average for women in part-time employment

Borders316219184127721581319152
Central37425921815085325271189107
Dumfries and Galloway3102131801247019816511565
Fife4202952441719721918212772
Grampian314219183127721581319152
Highland306213178124701631359453
Lothian450315262183103381317221125
Strathclyde458320267186105335279195110
Tayside38826922615688330275192108
Scotland4142902411689528523716593

(d) A married man as in (c) above living with three sons or daughters aged 18–24 years all of whom earn the average for full-time workers in the 18–24 years age group

Borders790714685622567515488448409
Central9358478227386731,0631,008927845
Dumfries and Galloway775696672607553648614565515
Fife1,050964911840766714677622567
Grampian785714681622567515488448409
Highland765696664607553532504463422
Lothian1,1251,0294768978171,2451,1811,085989
Strathclyde1,1451,0369939129311,0971,040957872
Tayside9708818427687001,0801,020942858
Scotland1,035947898825752930882810738

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 £ 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 18–24 year age group, where only GB figures were readily available.

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

asked the Secretary of State for Scotland what estimate he has as to how the current produce 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 (i) 100 per cent., (ii) 90 per cent., (iii) 75 per cent., and (iv) 60 per cent. of an annual male manual worker's wage in Scotland, (b) a married man with earnings as in (a) above, whose wife's earnings are the average for women in full-time employment, (c) a married man with earnings as in (a) above, whose wife's earnings are the average for women in part-time employment, (d) a married man with earnings as in (a) above, whose wife has no income, (e) a married couple with earnings as in (b) above, living with a son or daughter aged 18 or over whose earnings are the average for full-time workers in the 18 to 24 years age group, (f) a married couple with earnings as in (b) above, living with a son or daughter aged 18 to 24 years who is unemployed, (g) a single person on 100 per cent. of an average male non-manual worker's wage and (h) a married man with earnings as in (g) above, whose wife's earnings are the average for women in full-time employment.

AreaCommunity ChargeEqualised Local Income TaxUnequalised Local Income Tax
100 per cent.90 per cent.75 per cent.60 per cent.100 per cent.90 per cent.75 per cent.60 per cent.
£££££££££
(a) A single person earning 100 per cent., 90 per cent., 75 per cent., 60 per cent, of average manual earnings
Borders15827223818112519617013090
Central187323282214149405351269187
Dumfries and Galloway155266234176123247214164114
Fife210367317244169272236181125
Grampian15727223718112519617013090
Highland15326623117612320317513493
Lothian225393239260181475411315219
Strathclyde229399345265184418362277193
Tayside194336292223155412356273190
Scotland207361312239166355307235163
(b) A married man with earnings as in (a) above, whose wife's earnings are the average for women in full-time employment
Borders316390357298243282255215176
Central374462423353288580526444362
Dumfries and Galloway310380350291237354320271221
Fife420526475402328390353298243
Grampian314390355298243282255215176
Highland306380346291237291263222181
Lothian450563509430350680616520424
Strathclyde458571578437356598542458373
Tayside388480439367299593536455371
Scotland414517468395322508460388316
(c) A married man with earnings as in (a), whose wife's earnings are the average for women in part-time employment
Borders3162392041479218214610566
Central374283241174109355301219137
Dumfries and Galloway3102322001438921618313383
Fife47022227129812423920214792
Grampian3142392031479218214610566
Highland3062331971449017815010988
Lothian450344290212132416352256160
Strathclyde458259295215134366310226141
Tayside388294250181113360305222138
Scotland414316267194121311263191119
(d) A married man with earnings as in (a) above, whose wife has no income
Borders316219184127721581319152
Central37425921815085375271189107
Dumfries and Galloway3102131801247019816511565
Fife4202952441719721918212772
Grampian314219183127721581319152
Highland306213178124701631359453
Lothian450315262183103381317221125
Strathclyde458320267186105335279195110
Tayside38826922615688330275192108
Scotland4142902411689528523716593
(e) A married couple with earnings as in (b), living with a son or daughter aged 18 or over whose earnings are the average for full-time workers in the 18–24 years age group
Borders474555527463408401374334295
Central561658621549484826771690608
Dumfries and Galloway465541514452398504470421371
Fife630749697625551555518463408
Grampian471555521463408401374234295
Highland459541508452398414386345304
Lothian675801747668588968904808712
Strathclyde687813760679598852796712627
Tayside582684644569501843783705621
Scotland621736687614541723675603531
(f) A married couple with earnings as in (b) above, living with a son or daughter aged 18 to 24 years who is unemployed
Borders429390357298243282255215176
Central488462423353288580526444362
Dumfries and Galloway422380350291237354320271221

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

Area

Community Charge

Equalised Local Income Tax

Unequalised Local Income Tax

100 per cent.

90 per cent.

75 per cent.

60 per cent.

100 per cent.

90 per cent.

75 per cent.

60 per cent.

£

£

£

£

£

£

£

£

£

Fife543526475402328390353298243
Grampian430390355298243282255215176
Highland419380346291237291263222181
Lothian574563509430350680616520424
Strathclyde584571578437356598542458373
Tayside507480439367299593534455371
Scotland536517468395322508460388316

Community Charge

Equalised Local Income Tax

Unequalised Local Income Tax

100 per cent.

100 per cent.

(g) A single person on 100 per cent, of an average male non-manual worker's wage

Borders158406293
Central187482604
Dumfries and Galloway155397368
Fife210548406
Grampian157406293
Highland153397302
Lothian225585708
Strathclyde229595623
Tayside194500614
Scotland207538529

(h) A married man with earnings as in (g), whose wife's earnings are the average for women in full-lime employment

Borders316524378
Central374621786
Dumfries and Galloway310512475
Fife470706524
Grampian314524378
Highland306512390
Lothian450755914
Strathclyde458767804
Tayside388646792
Scotland414694682

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 £ 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 18–24 year age group, where only GB figures were readily available.

(5) In applying local income tax rates to cases (a) to (h) 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.