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Local Government Finance

Volume 165: debated on Friday 19 January 1990

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To ask the Secretary of State for Wales, further to his answer to the hon. Member for Caenarfon of 8 January, Official Report, column 502, on local government finance in Wales, what allowance he has made, in calculating the income from the standard community charge for each district in Wales, for owners of holiday homes who previously paid domestic rates, changing to the uniform business rate for such properties, where they are let out for a proportion of each year.

The assumptions I have made for standard charge multipliers for each district in Wales for 1990–91 are set out in paragraph 3 of the Welsh revenue support grant distribution report.

Regulations will shortly be laid before the House defining the boundary between domestic and non-domestic property and bringing into non-domestic rating those individual units of self-catering accommodation which are available for letting for 140 or more days each year. On the basis of those regulations, account can be taken in future local government finance settlements of the non-domestic rate income collectable in respect of these properties. It will be pooled and distributed on a per capita basis to all Welsh districts.

To ask the Secretary of State for Wales on what percentage he based his inflation forecast in determining the Welsh local government expenditure settlement for the years 1988–89 and 1989–90.

The local authority settlements for 1988–89 and 1989–90 represented the Government's view of what it would be appropriate for local government to spend. Like all public expenditure plans they were set in cash terms.