home *** CD-ROM | disk | FTP | other *** search
- Path: sparky!uunet!mcsun!uknet!strath-cs!jim
- From: jim@cs.strath.ac.uk (Jim Reid)
- Newsgroups: soc.culture.british
- Subject: Re: The Poll Tax (was Re: Democracy and the law)
- Message-ID: <11425@baird.cs.strath.ac.uk>
- Date: 22 Jan 93 13:22:03 GMT
- References: <JIM.93Jan19131224@hunter.cs.strath.ac.uk>
- <1993Jan20.133634.18857@osf.org>
- Sender: news@cs.strath.ac.uk
- Organization: Comp. Sci. Dept., Strathclyde Univ., Glasgow, Scotland.
- Lines: 84
- Nntp-Posting-Host: bain.cs.strath.ac.uk
- In-reply-to: david@postman.gr.osf.org's message of 20 Jan 93 13:36:34 GMT
- Originator: jim@bain.cs.strath.ac.uk
-
- In article <1993Jan20.133634.18857@osf.org> david@postman.gr.osf.org (David George) writes:
-
- In article <JIM.93Jan20111537@hunter.cs.strath.ac.uk>, jim@cs.strath.ac.uk (Jim Reid) writes:
- |> Wrong. Scotland had two rates revaluations which pushed up everyone's
- |> bills because of the rocketing inflation in house prices.
-
- There is zero logic in this statement Jim. Rates only rise if the
- local council is spending more money. Revaluations will mean some
- people pay higher rates, some lower. If the rateably value of all
- property is increased than the general rate will be lower (% levied on
- rateable value) and the money raised will be same. This is common
- question on '0' level (grade) maths papers.
-
- What I said was a simplification because I didn't want to get
- diverted into a detailed explanation of the mechanics of local
- government finance under the old rating system. Oh well.
-
- If rates went up across the board it is for a number of reasons:
-
- 1) general inflation
- 2) the council is providing more services
- 3) the rates were previously too low, the council was borrowing
- 4) the rate support grant is being reduced - presumably to finance
- ii) higher govt. spending (under Labour)
- iii) tax cuts (under the Conservatives)
-
- Up to a point. What happened was that there were two revaluations in
- Scotland which dramatically increased the rateable value of property.
- (As we all know, this was based on the notional rental value of your
- home, which, indirectly, was dramatically increased by the inflation
- in house prices in the 70's and 80's and by the abolition of rent
- controls by the Thatcher government.) The highest increases tended to
- be in areas which usually voted Conservative. The protests from these
- Tory supporters naturally got the attention of Tory MPs who then
- lobbied for rates reforms which led to the Poll Tax.
-
- Councils did not cut their rate charges when rateable values rose for
- a number of reasons. The main one was to minimise the impact of the
- squeeze on their finances. This was caused by inflation, but mainly by
- central government cutting the rate support grant and introducing
- rate-capping. Rate-capping means that the government decides how much
- local government may spend and, if they exceed that amount, the
- difference is deducted from the rate support grant. (i.e. A #1M
- overspend would lose a council #1M from government - a #2M shortfall
- in revenue.) The introduction of the government-set business rate also
- didn't help.
-
- Local authorities had/have little control over their own affairs.
- Their main source of income - rate support grant - was controlled by
- the government and being reduced. Business rates were also controlled
- by central government. (BTW these were cut in the hope that this would
- "help businesses".) This left domestic rates as the only significant
- way a council could raise revenue. Hence, domestic rates increased and
- the howls from those worst affected - Conservative supporters - gave
- rise to the Poll Tax as the Thatcher government decided to "do
- something about the rates".
-
- Lothian Regional Council was the only in Scotland to deliberately
- overspend and improve services (like heavily subsidising public
- transport). Not surprisingly, they were heavily penalised by the
- government and LRC's domestic rates bills had the biggest increases.
-
- 5) some councillor is bunging all the road laying contracts out to
- his brother, who charges twice as much because he has to pay
- backhanders.
-
- Ahhh, now you're talking about Monklands District Council... :-)
-
-
- |> It was also unfair as a
- |> flat-rate tax did not take account of people's ability to pay.
-
- It was a two tier tax. Levied at either 20% or 100% depending on
- ability to pay (means tested).
-
- Not really. An 18-year old working for 80 quid a week paid the full
- whack, just like say a cabinet minister earning 1600 quid a week.
- The discounts which were introduced didn't go far enough and had lots
- of anomalies. It also does not detract from the blatant unfairness of
- the tax: it's not unreasonable to expect a fair tax to levy approx. N
- times more (less) on someone who earns or is worth N times more (less)
- than me. The Poll Tax didn't do this.
-
- Jim
-