Abolition of Domestic Rates Etc. (Scotland) Act 1987
Encyclopedia
The Abolition of Domestic Rates Etc. (Scotland) Act 1987 (1987 c. 47) was an Act of Parliament
of the Parliament of the United Kingdom
.
The Conservative government of Margaret Thatcher
was committed to the reform of local government finance; the solution decided upon by the mid-1980s was the introduction of the per-capita "community charge
" - more famously known as the Poll Tax - and the abolition of the previous "rates" system, which had been based solely on property ownership.
In Scotland
, a revaluation of the housing rates in 1985-1986 had increased the burden on homeowners - heavily Conservative voters - and caused a political storm. This caused something of a panic among Scottish Conservatives, fearful of the effects in marginal seats, who pressed for reform to be sped up in time for the 1987 general election
.
It was decided that the poll tax would be implemented in Scotland before the rest of the United Kingdom, and a bill was drafted and put before Parliament in late 1986 with this intention - it was the final major piece of legislation introduced before the election. It received its second reading on 9 December, when it was described by Malcolm Rifkind
as a "radical reforming measure".
Two significant amendments were made in response to backbench concerns. Firstly, it was to be implemented in one sweep in 1989, rather than progressively between 1989 and 1992, against the advice of the Scottish Office. The second change was to make each individual liable to the tax responsible for paying rather than designating a single "head of household" in each residence and requiring them to collect for the others; whilst this did not make much difference in a normal family dwelling, it meant that in multiple-occupation housing - especially student houses - it would prove very difficult to pin down individuals in order to tax them.
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
of the Parliament of the United Kingdom
Parliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...
.
The Conservative government of Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
was committed to the reform of local government finance; the solution decided upon by the mid-1980s was the introduction of the per-capita "community charge
Community Charge
The Community Charge, popularly known as the "poll tax", was a system of taxation introduced in replacement of the rates to part fund local government in Scotland from 1989, and England and Wales from 1990. It provided for a single flat-rate per-capita tax on every adult, at a rate set by the...
" - more famously known as the Poll Tax - and the abolition of the previous "rates" system, which had been based solely on property ownership.
In Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, a revaluation of the housing rates in 1985-1986 had increased the burden on homeowners - heavily Conservative voters - and caused a political storm. This caused something of a panic among Scottish Conservatives, fearful of the effects in marginal seats, who pressed for reform to be sped up in time for the 1987 general election
United Kingdom general election, 1987
The United Kingdom general election of 1987 was held on 11 June 1987, to elect 650 members to the British House of Commons. The election was the third consecutive election victory for the Conservative Party under the leadership of Margaret Thatcher, who became the first Prime Minister since the 2nd...
.
It was decided that the poll tax would be implemented in Scotland before the rest of the United Kingdom, and a bill was drafted and put before Parliament in late 1986 with this intention - it was the final major piece of legislation introduced before the election. It received its second reading on 9 December, when it was described by Malcolm Rifkind
Malcolm Rifkind
Sir Malcolm Leslie Rifkind KCMG QC MP is a British Conservative Party politician and Member of Parliament for Kensington. He served in various roles as a cabinet minister under Prime Ministers Margaret Thatcher and John Major, including Secretary of State for Scotland , Defence Secretary and...
as a "radical reforming measure".
Two significant amendments were made in response to backbench concerns. Firstly, it was to be implemented in one sweep in 1989, rather than progressively between 1989 and 1992, against the advice of the Scottish Office. The second change was to make each individual liable to the tax responsible for paying rather than designating a single "head of household" in each residence and requiring them to collect for the others; whilst this did not make much difference in a normal family dwelling, it meant that in multiple-occupation housing - especially student houses - it would prove very difficult to pin down individuals in order to tax them.