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Council Tax

Volume 716: debated on Wednesday 6 January 2010

Question

Asked by

To ask Her Majesty's Government what would have been the financial effect by income decile had council tax been frozen for the past year for which information is available. [HL499]

We estimate that the average change in income by income decile of all UK households as a result of holding 2008-09 rates of council tax constant in cash terms in 2009-10 would be as shown in the table below.

Income decile

Average change for those effected (£ per year)

Bottom

+35

2nd

+35

3rd

+35

4th

+35

5th

+35

6th

+40

7th

+35

8th

+40

9th

+40

Top

+45

These estimates have been calculated from HM Treasury's tax and benefit static micro-simulation model using Family Resources Survey 2007-08 data uprated to 2009-10 levels of prices and earnings. Figures have been rounded to the nearest £5.