Local Government Finance (Hansard, 24 January 1990)

§ 8. Mr. Nellist
To ask the Secretary of State for the Environment if he will make a statement on his latest initiatives to publicise the introduction of the poll tax.

§ The Minister for Local Government and Inner Cities (Mr. David Hunt)
A public information campaign is currently taking place. It is designed to ensure that as many as possible of the 10 million people who could be helped through the payment of community charge benefit, and of the 6 million people who could be helped through the provision of transitional relief, know whether they need to apply in order to receive such help.

§ Mr. Nellist
Is the Minister aware that no matter how much the Department spends on television advertisements, such as the pensioner telling her dog "Flash" about so-called community charge benefit, the reality is that 1 million people in Scotland are not paying the poll tax? They are likely to be joined in April by millions more in England and Wales [HON. MEMBERS: "Including Labour Members?"] Yes, including more than 30 of my hon. Friends. The Minister may think that the battle ended last Thursday with the containment of a few Tory rebels, but, in the words of Ronald Reagan, "He ain't seen nothing yet."

§ Mr. Hunt
I very much hope that the hon. Gentleman will carefully reflect on what he has just said. He is in a position of authority by virtue of his membership of this honourable House. Will he reflect on the fact that by his action his constituents will have to pay a higher community charge so that he and his cronies can have a free ride?

§ Mr. Squire
Is my hon. Friend aware that I have a press release from the hon. Member for Coventry, South-East (Mr. Nellist) which mentions up to 30 Labour Members of Parliament joining a mass non-payment campaign? Will he accept that those of us who have always been agnostic about the community charge have never suggested that we support non-payment? We fully represent and recognise Parliament's standing in passing laws. Will my hon. Friend join me in recognising that any campaign to encourage the 882 non-payment of taxes can only be in the worst interests of this country and, above all, can only reflect badly on the Labour party?

§ Mr. Hunt
I entirely agree with my hon. Friend. The privilege of membership of this mother of Parliaments confers on us not only rights and privileges but also duties and responsibilities. The hon. Member for Coventry, South-East (Mr. Nellist) sets a very bad example to the country in seeking to urge others not to pay as well as saying that he will not himself pay the community charge. It is, however, very much a matter for the Labour party, and I urge the hon. Member for Dagenham (Mr. Gould) and his colleagues to join me in condemning the hon. Gentleman.

§ Mr. Blunkett
I do not think that we will have any difficulty in defeating the poll tax at the ballot box.
Given the Secretary of State's admission last Thursday that the standard spending assessment system on which local authorities' assessment of need is based is inadequate, given that the distribution system was admitted to be flawed and in need of revision for next year and given the undisputed fact that poll tax figures in at least two thirds of local authorities will be somewhere in the region of £60 to £100 above the Government's target figures, will the Minister stop blaming local government and admit that the £3 so-called ceiling on increases is a myth and that the transition system which is being publicised is, therefore, unacceptably flawed when it comes to what people will get? Will he redirect our money away from propaganda and towards telling people the truth?

§ Mr. Hunt
I greatly regret that the hon. Member for Sheffield, Brightside (Mr. Blunkett) did not take this early opportunity of criticising his hon. Friend the Member for Coventry, South-East and of making it clear that his hon. Friend would get no support from him.
As regards the hon. Gentleman's other points, we made it clear in the debate, and I made it clear to the Association of District Councils yesterday, that my right hon. Friend the Secretary of State and I are perfectly prepared to look at any new evidence that councils wish to adduce as to why their position under the standard spending assessment should be improved. That remains our position. It is now a fact, however, that as the last piece of the jigsaw goes in and every council in the country knows the amount of external finance that it will receive, the level of the community charge is now up to every council to decide.

§ Sir Dudley Smith
Will my hon. Friend bear in mind that many well-conducted councils face a tremendously above-average increase in the community charge? After this first year, will he please go into the whole question of the grant formula to see whether councils can be more fairly treated?

§ Mr. Hunt
I agree that my hon. Friend the Member for Warwick and Leamington (Sir D. Smith) is an effective lobbyist on behalf of his area and the Warwickshire county council. I reiterate that we shall look at any new evidence that he seeks to adduce as to why the standard spending asessment in Warwickshire does not reflect the county's actual needs, but I remind him that nationally the total of the SSAs is 11 per cent. above the equivalent total for grant-related expenditures in the coming year and the external finance goes up by 8.5 per cent.