Local Government Finance (Hansard, 27 March 1991)

§ 9. Mr. Winnick
To ask the Secretary of State for the Environment if he will make a further statement on the Government's position on the poll tax.

§ Mr. Heseltine
My right hon. Friend the Chancellor of the Exchequer announced in his Budget a new grant to reduce community charges by £140 in 1991–92. I announced on 21 March that the community charge would be replaced at the earliest opportunity by a new local tax.

§ Mr. Winnick
Leaving aside last night's debate, is the Secretary of State at all disappointed that surveys and polls have shown that the public—including members of the Conservative party—are no more enthusiastic about his proposed two-tax scheme, incorporating "son of poll tax", than they are about the existing poll tax scheme" As there seem to be as many proposals from the Conservative Benches for replacing the poll tax as there are Tory Members, why does the Secretary of State not admit frankly that the Tory party is hopelessly split on the issue and does not have a clue how to proceed?

§ Mr. Heseltine
The one very clear message in the opinion polls is that the party to which I belong is eight points up on where it was three months ago. No wonder the Labour party is so worried.

§ Mr. Fry
When my right hon. Friend introduces the new tax, will he abandon the very expensive register that has been such a heavy cost on local authorities, ignore the protests of the Labour party and have the courage to use the electoral register, setting it against the number of adults in a house?

§ Mr. Heseltine
I must ask my hon. Friend to allow the consultation paper, which will cover these matters, to be published in the early part of April. Then we shall be able to examine both this and a number of other matters.

§ Mr. Simon Hughes
If and when the Secretary of State abolishes the poll tax and replaces it with his twin tax, what assurances will he be able to give to some of my constituents who live in a high-rated and high-value property in central London? The several adults who live in that property are either not earning or have minimal incomes. Will the new system be securely based on that household's ability to pay, not on other artificial criteria relating to property and the number of people, irrespective of income?

§ Mr. Heseltine
The hon. Gentleman is wrong not to remember that we have announced clearly that the community charge will end by 1993 and that we shall replace it not with two taxes but with one. On his specific question, he can be very sure that we shall have those matters in mind.