Poll tax (Great Britain)

TheCommunity Charge,commonly known as thepoll tax,was a system of local taxation introduced byMargaret Thatcher's government whereby each taxpayer was taxed the same fixed sum (a "poll tax"or"head tax"), with the precise amount being set by each local authority. It replaceddomestic ratesinScotlandfrom 1989, prior to its introduction inEnglandandWalesfrom 1990. The abolition of the poll tax was announced in 1991 and it was replaced in 1993 by the current system of theCouncil Tax.

A leaflet explaining the Community Charge (the so-called "poll tax" ), Department of the Environment, April 1989

Origins

The abolition of therating systemof taxes (based on the notional rental value of a house) to fundlocal governmenthad been unveiled byMargaret Thatcherwhen she was Shadow Environment Secretary in 1974, and was included in the manifesto of theConservative Partyin theOctober 1974 general election.In the 1979 elections the Conservative manifesto stated that lowering income tax took priority. The Government published agreen paperin 1981 under the titleAlternatives to Domestic Rates.It considered a flat-rate per-capita tax as a supplement to another tax, noting that a large flat-rate tax would be seen as unfair.

The 1980s saw a period of general confrontation between central government and Labour-controlled local authorities over levels of expenditure (known as the "rate-capping rebellion"), which eventually led to the abolition of theGreater London Counciland the sixmetropolitan countycouncils. The commitment to abolish the rates was replaced in the1983 general electionmanifesto with a commitment to introduce the ability for central government to cap rates which it saw as excessive. This was introduced by theRates Act 1984.

Although the rates system was supposed to have regular revaluations to minimise discrepancies, the revaluations in England and Wales had been cancelled in 1978 and 1983. The Scottish revaluation of 1985/1986 led to a great deal of criticism and gave added urgency to rates reform or replacement.

The green paper of 1986,Paying for Local Government,produced by theDepartment of the Environmentfrom consultations betweenLord Rothschild,William WaldegraveandKenneth Baker,proposed the poll tax. This was a fixed tax per adult resident, although there was a reduction for poor people. This charged each person for the services provided in their community. Owing to the variations in the amount of local taxes paid and the amount of grant provided by central government to individual local authorities, there were differences in the amount charged between councils.

It become known as the "poll tax" as this is a general term referring to a tax charged at an equal amount per head (also known as a head-tax), but also as a reference to historical unpopular head-taxes, in particular the EnglishPoll Tax of 1379.

This proposal was contained in theConservativemanifestofor the1987 General Election.The legislation introducing the poll tax was passed in 1987, 1988,and the new tax replaced the rates in Scotland from the start of the 1989/90 financial year and in England and Wales from the start of the 1990/91 financial year. Additionally, theUniform Business Rate,levied by local government at a rate set by central government and then apportioned between local authorities in proportion to their population, was introduced.

The tax was not implemented inNorthern Ireland,which continued, as it still does as of 2018,to levy the rating system, despite some unionists calling for the region to have the same taxation system as Great Britain.

Implementation

The poll tax when implemented encountered a number of administrative and enforcement difficulties. Some renters did not pay, knowing they would have moved elsewhere by the time the bills arrived. Councils of towns with highly mobile populations, such as university towns, were faced with big store rooms of unprocessed "gone-aways". The initial register, which was based on the rates register for "owned" houses, contained many irregularities from supplementary data sources such as housing benefit recipients.

A significant collection issue was the 20 per cent /100 per cent split. People in employment had to pay 100 per cent, while students and the registered unemployed paid 20 per cent. The nature of the shared house market meant that not even the landlord knew exactly who was living there; tenants were replaced and may have shared a "single" room with their partner. Therefore, the local council did not know who was living where and when.

Councils were burdened with the task of pursuing the large numbers of defaulters, many of whom were participating in organised resistance to the charge. There is also some evidence that the poll tax had a lasting effect of people not registering themselves on the electoral register to evade collection attempts, possibly because of the false impression that the words "poll tax" created. This may have affected the results ofthe 1992 general election,which ended in a fourth successive Conservative victory, despite most opinion polls pointing to ahung parliamentor narrow Labour majority.

Opposition

Graffiti against the poll tax nearHuddersfield

The change from payment based on the worth of one's house to a fixed rate was widely criticised as being unfair, and needlessly burdensome on those less well-off. Mass protests were co-ordinated by theAll Britain Anti-Poll Tax Federation,other national networks such as 3D (Don't Register, Don't Pay, Don't Collect) and by hundreds of local Anti-Poll Tax Unions (APTUs), which were not aligned to any particular political grouping. In Scotland, where the tax was implemented first, the APTUs called for mass non-payment. As the tax neared its implementation in England, protests against it began to increase. That culminated in a number ofpoll tax riots.The most serious of those was on 31 March 1990 – a week before the implementation of the tax – when between 70,000 and 200,000 peopledemonstrated against the tax. The demonstration aroundTrafalgar Squareleft 113 people injured and 340 under arrest,with over 100 police officers needing treatment for injuries.There were further conflicts and protests, but none on the scale of the Trafalgar Square riot.

As the amount of the poll tax began to rise and the inefficiency of local councils in their collection of the tax became apparent, large numbers of people refused to pay. Local councils tried to respond with enforcement measures, but they were largely ineffective given the huge numbers of non-payers. According to the BBC, up to 30 per cent of former ratepayers in some areas refused to pay.

The anti-poll-tax organisations encouraged non-payers not to register, to clog up the courts by contesting local council attempts to gain liability orders, and ultimately, not to attend court hearings arising from their non-compliance.In November 1990,South Yorkshire Policesaid they were planning to refuse to arrest poll tax defaulters, even when instructed to by the courts, because it would be "physically impossible for the police because of the large number of defaulters".

The opposition Labour Party, at its 1988 annual conference, decided against support for a non-payment campaign.In July 1991,Terry Fields,LabourMember of Parliament(MP) forLiverpool Broadgreen,and a member of theMilitant tendency,was imprisoned for sixty days for refusing to pay. At the time of Fields' jailing, Labour leaderNeil Kinnockcommented: "Law makers must not be law breakers."

In popular culture, the punk bandThe Exploitedfeatured the song "Don't Pay The Poll Tax" in their albumThe Massacre,which was released on 15 April 1990.

Over 40 people collaborated on Punk Aide's 1989 compilationsAxe The Tax, Can't Pay Won't PayandFuck The Poll Tax.Oi PolloiandChumbawambareleased and toured an EP calledSmash the Poll Tax.A compilation album,A Pox Upon The Poll Tax,was also released in 1989.The Orchidsreleased "Defy The Law" in response to the Poll Tax.

On their 22 March 1990Top Of The Popsappearance,Orbitalperformed "Chime"while wearing hoodies with a crosshair and seemingly-abstract images on them. Upon closer inspection, those images read" no poll tax ".

Political consequences

After the poll tax was announced, opinion polls showed the Labour opposition opening a strong lead over theConservativegovernment. Following the Poll Tax Riots, Conservative ministers contemplated abolition of the tax but knew that, as a flagshipThatcheritepolicy, its abolition would not be possible while Thatcher was still Prime Minister.Kinnock had vowed to abolish the poll tax if he won the next general election.

For this, among other reasons, Thatcher was challenged byMichael Heseltinefor the Conservative leadership in November 1990. Although she prevailed by a margin of fifty votes, she narrowly missed the threshold to avoid a second vote, and on 22 November 1990 she announced her resignation after more than a decade in office. All three of the contenders to succeed her pledged to abandon the tax.

The successful candidate,John Major,appointed Heseltine to the post of Environment Secretary, responsible for replacing the poll tax. In early 1991 theChancellor of the Exchequer,Norman Lamont,announced a rise inValue Added Taxfrom 15 to 17.5 per cent to pay for a £140 reduction in the tax. The abolition of the poll tax was announced on 21 March 1991.

The Conservative government was re-elected for a fourth successive term in office at the1992 general election,shaking off the strong challenge from the Labour Party. The Labour Party having been defeated in this way, their leaderNeil Kinnockresigned.

Abolition

By the time of the 1992 general election, legislation had been passedreplacing the poll tax with theCouncil Taxfrom the start of the 1993/1994 financial year. The VAT rate of 17.5 per cent remained despite an earlier policy of charging a higher poll tax.

Council Taxstrongly resembled theratessystem of tax that had been in effect prior to the poll tax. The main differences (at the Council Tax's inception) were that properties were placed in bands based on a range of property values, thereby capping the maximum amount, and that the tax was levied on the property's capital value rather than on its notional rental value. Households with only one occupant were also entitled to a 25 per cent discount. The only substantial change since the introduction of the Council Tax form ofdirect taxationis the gradual introduction of certain exemptions and discounts.

In 2015, any remaining debt was written off in Scotland with the passage of the Community Charge Debt (Scotland) Act 2015.

See also

• Poll tax riots
• Peasants' Revolt– 14th-century rebellion againstserfdomand the imposition of a poll tax
• Tommy Sheridan,Scottish socialist who originally came to prominence protesting against the poll tax
• Bedroom tax
• Window tax
• Poll tax

Further reading

• Alderman, R. K., and Neil Carter. "A very Tory coup: The ousting of Mrs Thatcher."Parliamentary Affairs44.2 (1991): 125–139.
• Bagguley, Paul. "Protest, poverty and power: a case study of the anti-poll tax movement",Sociological review,1995, vol. 43, n° 4, pp. 693–719.
• Anti-Poll Tax Community based campaign
• Burns, Danny.Poll Tax Rebellion(AK Press, Stirling, Scotland, 1992).
• Butler, David, Andrew Adonis, and Tony Travers.Failure in British government: the politics of the poll tax(Oxford University Press, 1994).
• Crick, Michael,and Adrian Van Klaveren. "Mrs Thatcher's greatest blunder."Contemporary British History5.3 (1991): 397–416; the poll tax.
• Gibson, John G. "Voter reaction to tax change: the case of the poll tax 1."Applied Economics26.9 (1994): 877–884.