Mr Major’s Written Parliamentary Answer on the Community Charge – 12 June 1990

Below is the text of Mr Major’s written Parliamentary Answer on the Community Charge on 12th June 1990.

Sir Ian Gilmour To ask the Chancellor of the Exchequer by how much the rates of personal income tax could need to be increased if (a) the whole of the community charge were transferred to income tax and (b) the whole of the community charge less expenditure on social services and housing were transferred to income tax.

Mr. Major [holding answer 6 June 1990]: Local authorities in Great Britain are forecast to raise £11.2 billion in community charge income. If the whole of this were to be raised from income tax, this would be equivalent to an increase of around 7½p in the basic rate of income tax.

Local authorities’ expenditure on social services and housing, excluding the housing revenue account, is budgeted to be around £ 5.3 billion. If the whole of the community charge income less this expenditure were to be raised from income tax, this would be equivalent to an increase of around 4p in the basic rate.