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Local Government Finance

Volume 164: debated on Thursday 21 December 1989

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To ask the Secretary of State for Scotland if he will make a statement on non-domestic rates in 1990–91.

In my statement to the House on 26 July about the revenue support grant settlement for 1990–91, 1 announced that I intended to reduce the rate bill for Scottish business next year by £80 million below what it would otherwise have been. I have now decided to apply this sum to reduce the rate poundage for all local authorities by 6·25 per cent. This will mean that all non-domestic ratepayers throughout Scotland will benefit from this further move to reduce their burden. The table shows the rate poundage which I intend to prescribe for each local authority in an order which I shall lay before Parliament early in the new year. The table also indicates the extent of the reduction in poundage at an individual ratepayer level as a result of our policy.It is implicit in our policy that, over a period, the 40 per cent. derating which at present applies to manufacturing and freight industry in Scotland should be eliminated. But my intention is that the phasing out of industrial derating should be co-ordinated with the phasing in of a unified business rate north and south of the border. This will give manufacturing and freight industry the assurance that the effect of reducing the level of derating will in any particular year be neutral. For all other business sectors, the: reduction will be entirely beneficial. Having regard to my decision to reduce rate poundages by 6·25 per cent., I intend to set the level of industrial derating next year to 35 per cent., a decrease of 5 per cent. on the present level. The position will be reassessed each year until a unified business rate has been achieved and industrial derating has been eliminated entirely.

Column 1

Column 2

Column 3

Column 4

1990–91 Rate Poundage Pre-UBR Reduction

1990–91 Rate Poundage Pre-UBR Reduction

Reduction to Ratepayer

Region + District Reduction

p

p

p

p

Strathclyde49·146·0-3·1
Tayside45·943·0-2·9
Orkney41·939·3-2·6-2·6
Shetland39·637·1-2·5-2·5
Western Isles61·557·6-3·9-3·9
Berwickshire8·07·5-0·5-2·9
Ettrick and Lauderdale9·18·5-0·6-3·0
Roxburgh10·19·4-0·7-3·1
Tweeddale7·77·2-0·52·9
Clackmannan15·914·9-1·0-3·8
Falkirk13·012·2-0·8-3·6
Stirling19·318·1-1·2-4·0
Annandale and Eskdale9·79·1-0·6-3·2
Nithsdale9·79·1-0·6-3·2
Stewartry8·47·9-0·5-3·1
Wigtown7·97·4-0·5-3·1
Dunfermline10·810·1-0·7-3·8
Kirkcaldy13·412·6-0·8-3·9
North East Fife12·011·3-0·7-3·8
Aberdeen City11·711·0-0 7-3·0
Banff and Buchan10·59·8-0·7-3·0
Gordon8·47·9-0·5-2·8
Kincardine and Deeside6·96·5-0·4-2·7
Moray8·88·2-0·6-2·9
Badenoch and Strathspey6·76·3-0·4-3·2
Caithness10·59·8-0·7-3·5
Inverness8·07·5-0·5-3·3
Lochaber12·111·4-0·7-3·5
Nairn6·76·3-0·4-3·2
Ross and Cromarty10·59·8-0·7-3·5
Skye and Lochalsh10·19·4-0·7-3·5
Sutherland7·57·1-0·4-3·2
East Lothian14·313·4-0CC9-4·0
Edinburgh City14·013·1-0·9-4·0
Midlothian14·313·4-0·9-4·0
West Lothian12·611·8-0·8-3·9
Argyll and Bute15·914·9-1·0-4·1
Bearsden and Milngavie10·910·8-0·6-3·7
Clydebank16·315·3-1·0-4·1
Clydesdale14·113·2-0·9-4·0
Cumbernauld and Kilsyth13·913·0-0·9-4·0
Cumnock and Doon Valley14·313·4-0·9-4·0
Cunninghame17·216·1-1·1-4·2
Dumbarton15·914·9-1·0-4·1
East Kilbride12·011·2-0·8-3·9
Eastwood8·47·9-0·5-3 6
Glasgow City22·320·9-1·4-4·5
Hamilton15·114·2-0·9-4·0
Inverclyde13·412·6-0·8-3·9
Kilmarnock and Loudoun13·913·0-0·9-4·0
Kyle and Carrick14·313·4-0·9-4·0
Monklands15·114·2-0·9-4·0
Motherwell13·712·9-0·8-3·9
Renfrew15·114·2-0·9-4·0
Strathkelvin13·412·6-0·8-3·9
Angus11·310·6-0·7-3·6
Dundee City18-116·9-1·7-4·1
Perth and Kinross11·711·0-0·7-3·6

Notes:

1. Column 1 shows rate poundages which would have been required in 1990–91 were it not for the Government's Unified Business Rate policy.

2. Column 2 shows the actual rate poundages for 1990–91 which the Secretary of State intends to prescribe following the £80 million UBR reduction.

3. Column 3 shows the reduction in poundages at individual payer level.

To ask the Secretary of State for Scotland if he will make a statement on his proposed community charge transitional relief scheme.

I have today sent to the Convention of Scottish Local Authorities a paper describing the conclusions I have drawn after consultation with it. I intend to lay regulations in the new year which will provide for the introduction of the scheme.