Local Government Finance (Hansard, 23 May 1990)

§ 14. Mr. Winnick
To ask the Secretary of State for the Environment if he has any plans to introduce amending legislation for changes in the poll tax.

§ Mr. Portillo
The Government have already announced that they intend to bring forward legislation to amend the law on the standard community charge as it relates to caravans.

§ Mr. Winnick
Is the Minister for the poll tax disappointed that the tax remains as deeply unpopular as it was when it was first introduced? Will the recently appointed co-ordinator of Government lies—I am sorry, I mean "information"—have an input in any adjustments to the poll tax?

§ Mr. Portillo
Since I took on the new responsibilities, it has become clear to me that the principle that everyone should contribute to the cost of local government is becoming more and more widely accepted. Indeed, I remember hearing the hon. Member for Gordon (Mr. Bruce) say yesterday that the most unpopular system for local taxation in Scotland was not the community charge but the roof tax proposed by the Labour party.

§ Mr. Conway
Will my hon. Friend bear in mind that, although there is no real need to amend that legislation, if 280 he is to make the community charge more understandable. and more accountable in the metropolitan areas, he should amend section 7 of the Local Government Act 1972 and enable the county councils to be elected on the basis of one third retiring annually so that local electors do not have to wait until 1993 to express their views about the high charges that have been levied by Labour county councils in the main?

§ Mr. Portillo
I understand the point that my hon. Friend is making. He may be thinking of that the fact that in his own county of Shropshire income has increased over the past year by 16.3 per cent., which had a major effect on the community charge in Shrewsbury which was set at £333. I well understand that point and urge county councils to be responsible when setting their income demands because under the new system such demands impact on the charge payer.

§ Mrs. Mahon
What extra resources will the Minister give the poll-tax-capped councils which have to send out extra bills for the administrative costs? In view of those capped councils, will the Minister explain the accountability argument?

§ Mr. Portillo
It was with some regret that the Government felt that they had to embark on charge-capping, but unfortunately some councils exercised themselves in such a way that they overspent excessively. My right hon. Friend the Secretary of State therefore felt bound to offer some protection to the community charge payers. In proposing the caps, my right hon. Friend took into account the administrative costs of rebilling.

§ Mr. Dunn
Will my hon. Friend consider introducing legislation to help prevent the disgraceful practice of the Labour-controlled Walsall council, now also being followed by Labour-controlled Bradford council, that people living in Conservative wards are to receive fewer services and have less money spent on them than those in a Labour ward? Given that tomorrow the Labour party will be making a further attempt to con the British people into believing that Labour is suitable for Government, does my hon. Friend agree that the practices of Labour in power are nearer the truth?

§ Mr. Portillo
I have been so appalled by the allegations of that spiteful act that I am looking urgently into the matter. I have spoken today to Councillor Pickles in Bradford and am trying to establish what is going on. It would certainly be disgraceful if those practices were actually being carried out. I urge community charge payers in those areas to examine whether they have some recourse under the law as it now stands.

§ Mr. Gould
If the Minister is unable to tell us what changes he proposes to the poll tax, or whether legislation will be required, will he at least assure us that as soon as he has made up his mind he will make an immediate statement to the House? In the light of his earlier reply that all that he can say is "Abracadabra", will he assure the House that he is under no illusion that such an approach will suffice in the case of the poll tax?

§ Mr. Portillo
I am surprised that the hon. Gentleman has risen for a second time this afternoon and is leading with his chin once more. It is not the Government who are due to make an announcement—it is the Labour party, and we shall be looking closely at what the Labour party 281 says. My right hon. Friend the Secretary of State and I are currently engaged in trying to establish what anomalies there might be in the operation of the present tax. If we conclude that any changes are needed—I have not yet reached any conclusions—we shall, of course, make an announcement to the House.