Local Government Finance

To ask the Secretary of State for the Environment If he will detail each local authority with the percentage of its community charge collected in 1990–91, and 1991–92 to date, in descending order of percentage collected; and if he will make a statement.

I am arranging for the available information to be placed in the Library of the House.

To ask the Secretary of State for the Environment if he will publish the proportion of local authority revenue expenditure in England financed by

Local Authority Revenue Expenditure
	Revenue Expenditure¹		Government Grants²			Non-Domestic rates³			Domestic Rates/Community Charges⁴
	Cash £ million	1991–92 prices £ million	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.
1981–82	20,106	36,026	11,234	20,129	56	5,013	8,982	25	4,034	7,228	20
1982–83	21,952	36,718	11,705	19,578	53	5,685	9,509	26	4,548	7,607	21
1983–84	23,263	37,188	12,584	20,117	54	6,042	9,659	26	4,382	7,005	19
1984–85	24,119	36,719	13,126	19,983	54	6,361	9,684	26	4,707	7,166	20

(a) Government grant, (b) non-domestic rates and (c) local domestic taxation in each year from 1978–79 to 1990–91 and estimates for 1991–92 and 1992–93.

The available information is as follows:

Local Authority Revenue Expenditure¹
	Government grants²as percentage of local authority expenditure	Non-domestic rates³as percentage of local authority expenditure	Domestic rates/community changes⁴as percentage of local authority expenditure
1981–82	56	25	20
1982–83	53	26	21
1983–84	54	26	19
1984–85	54	26	20
1985–86	54	28	21
1986–87	50	28	22
1987–88	49	28	23
1988–89	46	28	25
1989–90	44	29	26
1990–91	41	29	28
1991–92	52	31	16
¹1992–93	56	29	15
¹ For the years 1981–82 to 1989–90, local authority expenditure is taken to be 'relevant expenditure' plus expenditure on certain non-relevant items such as net expenditure on mandatory student awards. It represents spending to be financed by rate support grant, relevant specific grants, rates and balances. This measure of expenditure is net of sales, fees and charges, interest receipts etc. For the years 1990–91 to 1992–93 local authority expenditure is 'revenue expenditure do compare with TSS' which is expenditure to be met from revenue support grant, specific grants in aggregate external finance, special grants, non-domestic rates, community charges and appropriation from reserves In 1991–92 the also included community charge grant and in 1992–93 this will include teachers pay award additional grant.
² For the years 1978–79 to 1989–90 Government grants comprise aggregate exchequer grant and rate rebate grants. For the years 1990–91 to 1992–93 Government Grants included are revenue support grant, special grants, specific grants in aggregate external finance, community charge grant (1991–92), teachers pay award additional grant (1992–93), community charge benefit and transitional relief/community charge reduction scheme grants.
³ For the years 1981–82 to 1989–90 this represents non-domestic rate yields net of rate relief. For the years 1990–91 to 1992–93 this represents the distributable amount from the non-domestic rates pool.
⁴ Net of domestic rate rebates for the years 1981–82 to 1989–90, net of community charge benefit grant and transitional relief/ community charge scheme grant in 1990–91, 1991–92 and 1992–93.
⁵ 1992–93 settlement.

To ask the Secretary of State for the Environment if he will publish a table showing the breakdown of local authority revenue for each year from 1979–80 to 1991–92 in terms of (i) Government grant, (ii) business rates and (iii) rates/poll tax expressed both in million pounds and constant prices and as a percentage.

The available information is as follows:

	Revenue Expenditure ¹		Government Grants ²			Non-Domestic rates ³			Domestic Rates/Community Charges ⁴
	Cash £ million	1991–92 prices £ million	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.	Cash prices £ million	1991–92 £ million	Per cent.
1985–86	24,284	35,037	13,069	18,856	54	6,740	9,725	28	5,094	7,350	21
1986–87	26,630	37,199	13,402	18,721	50	7,566	10,569	28	5,912	8,258	22
1987–88	28,980	38,394	14,274	18,911	49	8,088	10,715	28	6,539	8,663	23
1988–89	31,240	38,615	14,469	17,885	46	8,819	10,901	28	7,689	9,504	25
1989–90	33,282	38,633	14,707	17,072	44	9,595	11,138	29	8,487	9,852	26
1990–91	36,448	38,993	15,037	16,090	41	10,429	11,159	29	10,109	10,817	28
1991–92	39,880	39,880	20,834	20,834	52	12,408	12,408	31	6,388	6,388	16
Notes:
¹For the years 1981–82 to 1989–90, local authority expenditure is taken to be 'relevant expenditure' plus expenditure on certain non-relevant items such as net expenditure on mandatory student awards. It represents spending to be financed by rate support grant, relevant specific grant, rates and balances. This measure of expenditure is net of sales, fees and charges, interest receipts etc. For the years 1990–91 and 1991–92 local authority expenditure is 'revenue expenditure to compare with TSS' which is expenditure to be met from revenue support grant, specific grants in aggregate external finance, special grants, non-domestic rates, community charges and appropriation from reserves. In 1991–92 this also included community charge grant.
² For the years 1981–82 to 1989–90 Government grants comprise aggregate Exchequer grant and rate rebate grants. For 1990–91 and 1991–92 Government grants included are revenue support grant, special grants, specific grants in aggregate external finance, community charge grant (1991–92), community charge benefit grant and transitional relief/community charge reduction scheme grant.
³ For the years 1981–82 to 1989–90, this represents non-domestic rate yields net of rate relief. For the years 1990–91 to 1991–92 this represents the distributable amount from the non-domestic rates pool
⁴ Net of domestic rate rebates for the years 1981–82 to 1989–90. Net of community charge benefit grant and transitional relief/community charge reduction scheme grant for the years 1990–91 and 1991–92.

To ask the Secretary of State for the Environment what amount of poll tax revenue is outstanding to local authorities for 1990–91 and 1991–92.

Local authorities budgeted to collect £10,200 million in community charges in respect of 1990–91 and £6,400 million in respect of 1991–92. I estimate that by 31 December 1991 they had collected £9,900 million of the former and £4,300 million of the latter. Much of the remaining 1991–92 amounts will subsequently have been collected in the form of routine monthly payments in January and February 1992.

To ask the Secretary of State for the Environment what targets his Department has set for local authorities' collection of poll tax; and if he will make a statement.

Local authorities should be attempting to collect 100 per cent. of the community charges due in their areas; well-managed authorities are coming very close to achieving this.

To ask the Secretary of State for the Environment what representations he has received on the safety net arrangements within the national non-domestic rate system; and if he has any plans to make changes to those arrangements.

We have received a number of representations about the non-domestic rate transitional arrangements. We shall shortly be making regulations to allow transitional protection to continue in cases where a local authority waste disposal company takes over property occupied by an existing waste disposal authority under part II of the Environmental Protection Act 1990.

To ask the Secretary of State for the Environment what plans he has to make changes to the arrangements for the national non-domestic rate for 1992–93; and if he will make a statement.

A number of provisions modifying the non-domestic rating system are contained in schedule 10 to the Local Government Finance Bill. Those which would have effect in 1992–93 concern the payment of interest in respect of overpayments of rates, the rating of multiple moorings, the exemption of church property, the reference date for the determination of rateable values, and the information which charging authorities must take into account in calculating their contributions into the national non-domestic rating pool.

Volume 205: debated on Monday 2 March 1992