Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the policy paper entitled Plan for Change, published on 5 December 2024, CP1210, whether (a) council tax and (b) other local taxes will be included in the target of higher Real Household Disposable Income per person.

Real Household Disposable Income (RHDI) is reported by the ONS as part of the UK Economic Accounts.

RHDI represents the total income of households in a given period after direct taxes have been accounted for, with an adjustment for inflation. RHDI per person is calculated as aggregate RHDI divided by the estimated population.

As council tax is a direct tax faced by households, it is accounted for in the measurement of RHDI per person. Where other local taxes directly affect household income, they will also be accounted for in the measurement of RHDI per person.