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Council Tax

Volume 492: debated on Friday 15 May 2009

To ask the Secretary of State for Communities and Local Government what was the (a) percentage and (b) cash rise in (i) average B and D council tax in England and (ii) average council tax per dwelling in England in (A) absolute and (B) real terms in each year since 1997-98. (274768)

Information on the change in both percentage and cash terms in the average band D council tax in England and the average council tax per dwelling in England in both absolute and real terms in each year since 1997-98 is shown in the tables.

Absolute changeReal terms change1

£

Percentage

£

Percentage

Band D, two adults for area

1997-982

42

6.5

36

4.0

1998-992

59

8.6

41

4.4

1999-2000

51

6.8

51

5.1

2000-01

49

6.1

32

3.1

2001-02

54

6.4

48

4.5

2002-03

75

8.2

75

6.7

2003-04

126

12.9

112

9.5

2004-052

65

5.9

43

3.3

2005-062

47

4.1

11

0.8

2006-07

54

4.5

25

1.9

2007-08

53

4.2

-4

-0.3

2008-092

52

3.9

-4

-0.3

2009-10

41

3.0

Average dwelling

1997-982

39

7.4

36

4.9

1998-992

50

8.9

36

4.6

1999-2000

42

6.8

42

5.2

2000-01

41

6.3

27

3.2

2001-02

44

6.3

39

4.5

2002-03

63

8.5

63

6.9

2003-04

104

12.9

93

9.5

2004-052

59

6.5

42

3.9

2005-062

42

4.3

12

1.1

2006-07

47

4.7

23

2.0

2007-08

45

4.3

-2

-0.2

2008-092

44

4.0

-2

-0.2

2009-10

30

2.6

1 Adjusted using the all items retail prices index (RPI) as at April each year and based on April 2008 prices.

2 Amounts shown are after the designation of authorities requiring them to recalculate their budget requirement and council tax.

Source:

BR1, BR2, BR3 and CTB returns

The real terms change data for 2009-10 will not be available until after the publication of the April RPI figure on 19 May 2009.

Amounts shown are calculated on headline taxes and before benefits. Where indicated the figures are calculated after the designation of authorities that required them to recalculate their budget requirement and council tax.

The data are taken from the annual council tax base forms completed by all billing authorities in England and the Budget requirement forms completed by all billing and precepting authorities in England.

To ask the Secretary of State for Communities and Local Government if she will make an assessment of the (a) feasibility and (b) likely effect on the economy of replacing council tax with a local income tax. (275818)

No. The Government agree with Sir Michael Lyons’s conclusion, following his inquiry into local government, that council tax is broadly sound and should be retained. In his report Sir Michael concluded that a local income tax would result in a “significant rebalancing of the tax burden”.