§ Lord Henleyasked Her Majesty's Government:
Whether they have yet formed a view on the joint representations received from the City of London, the London Boroughs Association and the Association of London Authorities about the proposal that domestic rates should be retained in some parts of inner London for four years after introduction of the community charge.
The Earl of CaithnessWe have considered those representations carefully together with others from the individual boroughs concerned; the arguments which were put when this matter was considered in both Houses and revised illustrative community charges for the affected boroughs which we published last week. (Official Report, 23rd June: vol. 498, cols. 1042–1043).
In the light of all these considerations we have concluded that it would now be right to withdraw the proposals for residual rating, to move direct to the community charge and to abolish domestic rates everywhere in England with effect from 1st April 1990. We are therefore today tabling amendments to the Local Government Finance Bill which will have this effect.
The Government's original concern was with protecting community charge payers in the high spending areas from excessively high community charges. The present position, that residual rates should apply to 10 authorities, is no longer justifiable on the evidence before us. We have therefore accepted the arguments which have been put to us that other powers within the Local Government Finance Bill are sufficient to achieve the objective of tolerable levels of community charge in those inner London boroughs. I have placed in the Library exemplifications of the community charges which take account of this charge. These exemplifications replace those I provided on 23rd June to my noble friend Lord Sanford (Official Report, vol. 498: cols. 1042–1043).