Gce Model Questions Vol1 2023 Government Question 28

Two local authorities, A and B, receive a block grant of \(£12\) million each from central government and an additional per‑capita grant of \(£30\) per resident. Authority A has a population of \(150{,}000\) and a total assessed property value of \(£2\) billion; Authority B has a population of \(300{,}000\) and a total assessed property value of \(£5\) billion. Both authorities may levy a local tax of up to \(1\%\) of the assessed property value. Assuming each authority levies the maximum tax, calculate the total revenue for each authority, determine which authority has the higher per‑capita total revenue, and state by how much (in £) the per‑capita revenue of the higher‑earning authority exceeds that of the other.