HC Deb 15 November 1989 vol 160 cc355-6
12. Mr. Douglas

To ask the Secretary of State for Scotland if he will make a statement on the consequences for local authority manpower and expenditure of the recently announced changes in poll tax payments and exemptions.

Lord James Douglas-Hamilton

The manpower and expenditure consequences of all but one of the amendments to the community charge legislation included in the Local Government and Housing Bill are expected to be minor. The one exception is the transitional relief scheme. The Government have already undertaken to reimburse reasonable administrative costs incurred by local authorities.

Mr. Douglas

Does the Minister have the figures which would show the massive increase in the cost of collecting the poll tax, compared with the rating system, and the massive increase in personnel involved? Will he take time to read yesterday's excellent editorial in The Scotsman, which said that no matter what the Government try to do with the tax, it is becoming a shambles and ought to be completely removed from the statute book?

Lord James Douglas-Hamilton

Of course the collection of the community charge will be more expensive because it applies to more people. Before the hon. Member criticises that form of taxation he should remember what his own environment spokesman had to say. He said: The two tax idea had a great deal of merit but when it was approved by the Home Policy Committee I took a lead in expressing concern about the difficulty of selling two taxes". The hon. Member should also make representations to his own Front Bench.

Sir Nicholas Fairbairn

Does my hon. Friend think that if the hon. Member for Dunfermline, West (Mr. Douglas) is worried about an increase in expenditure on the collection of the tax falling on those who have to pay it, he should obey the law and pay his own?

Lord James Douglas-Hamilton

Yes, I would say to my hon. and learned Friend that those who refuse to pay community charge when they are well able to do so are sponging of the rest of the community.

Mr. Maxton

Is the Minister yet able to tell us what the recalculated allocation to Glasgow district council will be? Does it not illustrate the obscurity of the poll tax system that on 1 April there will be a massive increase in the poll tax for my deprived constituency in Castlemilk, while the wealthy citizens of Eastwood, Bearsden and Milngavie may have a cut in their poll tax? Is it not quite absurd, in the year when Glasgow is the city of culture, representing the United Kingdom throughout the world, that the Secretary of State is cutting the amount of money which he will give it?

Lord James Douglas-Hamilton

I am glad to say that this is being sorted out as a matter of urgency. The revised distribution proposals will be issued to COSLA and to local authorities within the next few days. I must make it clear that the figures issued in the statement earlier this week were provisional and that the grant is not payable until next April. Therefore, things will be sorted out quickly.

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