Local Taxation

Part of the debate – in the House of Commons at 4:00 pm on 4 July 2005.

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Photo of David Miliband David Miliband Minister of State (Communities and Local Government), Office of the Deputy Prime Minister 4:00, 4 July 2005

I very much look forward to taking that matter forward. We have quotes from Mr. Letwin and, although I know that he is something of a man of the past in the Conservative party because he is not running for the leadership, we shall certainly pursue the matter.

Council tax raises about 25 per cent. of income, central grant raises 53 per cent. and the national non-domestic rate about £18 billion, linked to the retail prices index. Thanks to the new prudential capital finance regime that took effect on 1 April 2004, local authorities are, for the first time, free to borrow for capital projects without Government consent. Those are the main sources of local expenditure.