How the coalition is repeating Thatcher's biggest mistake: the poll tax

Like the poll tax, the decision to cut council tax support by 10 per cent will force the poorest households to pay the local charge regardless of their income.

One of the unambiguous conclusions from the polling carried out since Margaret Thatcher's death is that her biggest mistake was the poll tax. Forty four per cent of those polled by YouGov for today's Sun select it as her greatest failure (more than for any other policy), while a Guardian/ICM survey found that 70 per cent believed it didn't work, compared to just 14 per cent who said it did (again, the worst rating received by any of her policies).

All of which makes it even more surprising that the coalition has chosen to effectively reintroduce it. The decision to cut council tax support by 10 per cent will force many of the poorest households to pay the monthly charge for the first time, regardless of their income. A report by the Joseph Rowntree Foundation found that 1.9 million families who do not currently pay council tax will be billed an average of £140 a year, while an additional 150,000 low income families will pay an average of £300 more. 

When the poll tax was introduced in 1989, the poor were at least assured that their benefits would rise with prices. But under George Osborne’s plan to uprate working-age benefits by 1 per cent for each of the next three years, rather than in line with inflation, their incomes will be squeezed to an unprecedented degree. Figures from the Institute for Fiscal Studies show that the average working family will lose £165 per year, while the average non-working family will lose £215. Confronted by these losses, which household will willingly pay hundreds of pounds in additional tax? Yet, for the sake of saving just £480m a year, the coalition intends to force councils to chase the poorest through the courts to recoup a charge they cannot afford to pay.

By devolving council tax support (Council Tax Benefit, which 5.9 million households receive, is currently administered by central government) and requiring local authorities to design their own schemes, ministers are hoping to avoid receiving the blame for the tax rises. Their luck may well hold. But more than any other austerity measure, "Poll Tax II" has the potential to cause a mass revolt. 

 

A protest in Trafalgar Square in 1990 against the poll tax.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.