Poll tax (Great Britain) facts for kids
The Community Charge, often called the poll tax, was a new way of collecting money for local services in the United Kingdom. It was started by Margaret Thatcher's government. This tax replaced an older system called "domestic rates." The poll tax began in Scotland in 1989 and then in England and Wales in 1990.
Unlike the old system, which was based on the value of your home, the poll tax was a flat fee paid by every adult. This meant everyone over 18 paid the same amount, no matter how much money they earned or how big their house was. Local councils decided how much the charge would be. The poll tax was very unpopular and was replaced by the Council Tax in 1993.
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Why the Poll Tax Started
The idea to get rid of the old "rates" system had been around for a while. Rates were taxes paid to local councils based on how much a house could be rented for. In 1974, Margaret Thatcher, who later became Prime Minister, suggested changing this system. Her political party, the Conservative Party, even mentioned it in their plans for elections.
Early Ideas for Change
In 1981, the government looked at different ways to fund local services. They thought about a flat-rate tax for each person, but they worried that a large "poll tax" might seem unfair.
During the 1980s, there were many disagreements between the central government and local councils, especially those run by the Labour Party. This led to some big councils, like the Greater London Council, being closed down. The government also gained the power to limit how much local councils could charge in rates if they thought it was too high.
Problems with the Old System
The old rates system was supposed to be updated regularly to keep things fair. However, these updates were often cancelled in England and Wales. When Scotland had an update in 1985/1986, it caused a lot of complaints. This made the government feel they needed to change the tax system more urgently.
The Poll Tax Proposal
In 1986, a new plan called Paying for Local Government suggested the poll tax. This plan proposed a fixed tax for every adult living in an area. There were some reductions for people with low incomes. The idea was that everyone should pay for the services provided in their community. Because local councils had different costs and received different amounts of money from the central government, the amount of poll tax varied from one area to another.
The name "poll tax" came from older taxes in history where everyone paid the same amount per head. For example, there was an English poll tax in 1379.
The Conservative Party included the poll tax in their plans for the 1987 election. Laws were passed to introduce it. The new tax replaced rates in Scotland in April 1989 and in England and Wales in April 1990. Businesses also started paying a "Uniform Business Rate," which was set by the central government. The poll tax was not introduced in Northern Ireland.
How the Poll Tax Worked (and Didn't)
When the poll tax started, it faced many problems. It was hard to manage and collect.
Collection Challenges
Many people who rented homes did not pay the tax. They knew they might move before the bills arrived. Councils in places with many people moving in and out, like university towns, ended up with huge piles of unpaid bills. The first list of people who had to pay was based on old records, which caused many mistakes.
Another big problem was that some people paid 100% of the tax, while students and unemployed people paid 20%. It was hard for councils to know exactly who was living where, especially in shared houses. Landlords often didn't know all their tenants, and people might share rooms. This made it very difficult for local councils to keep track of who should pay.
Councils struggled to chase after the large number of people who didn't pay. Many people were part of organised groups that refused to pay the tax. There is also some evidence that the poll tax made people avoid registering to vote, so they wouldn't be found and asked to pay. This might have affected the 1992 general election results.
Strong Opposition
Many people criticised the poll tax because it seemed unfair. Moving from a tax based on house value to a fixed fee meant that poorer people often paid a much larger share of their income.
Protests and Non-Payment
Large protests were organised by groups like the All Britain Anti-Poll Tax Federation. Hundreds of local Anti-Poll Tax Unions also formed. In Scotland, where the tax started first, these groups encouraged people not to pay. As the tax was about to start in England, protests grew bigger.
The biggest protest happened on March 31, 1990, just a week before the tax began in England. Between 70,000 and 200,000 people protested in Trafalgar Square in London. This protest turned into a riot, with 113 people injured and 340 arrested. Over 100 police officers needed medical help. Other protests followed, but none were as large as the Trafalgar Square riot.
As the poll tax amounts increased and councils struggled to collect the money, many people simply refused to pay. Councils tried to force people to pay, but it was very difficult because so many people were not paying. The BBC reported that up to 30% of people in some areas refused to pay.
Anti-poll-tax groups told people not to register for the tax. They also encouraged people to challenge court orders and not attend court hearings. In November 1990, the police in South Yorkshire said they would not arrest people who didn't pay the poll tax, even if ordered by courts. They said it would be "physically impossible" due to the huge number of people involved.
The main opposition party, the Labour Party, decided not to support the non-payment campaign. In July 1991, Terry Fields, a Labour Member of Parliament, was sent to prison for 60 days for refusing to pay the tax. The Labour leader, Neil Kinnock, said at the time, "Law makers must not be law breakers."
Political Impact
After the poll tax was announced, public opinion polls showed that the Labour Party was becoming much more popular than the Conservative government. After the poll tax riots, some Conservative ministers thought about getting rid of the tax. However, they knew that Margaret Thatcher, who strongly supported the tax, would not allow it while she was Prime Minister.
Thatcher's Resignation
Because of the poll tax and other reasons, Margaret Thatcher faced a challenge for the leadership of the Conservative Party in November 1990. She won the vote, but not by enough to avoid a second vote. On November 22, 1990, she announced her resignation after more than ten years as Prime Minister. All three politicians who wanted to replace her promised to get rid of the poll tax.
John Major became the new Prime Minister. He appointed Michael Heseltine to find a replacement for the poll tax. In early 1991, the government announced a rise in Value Added Tax (VAT) from 15% to 17.5%. This extra money helped to reduce the poll tax by £140 for everyone. The official end of the poll tax was announced on March 21, 1991.
Despite the problems with the poll tax, the Conservative government won the 1992 general election. This was their fourth election victory in a row. After this defeat, Labour Party leader Neil Kinnock resigned.
Ending the Poll Tax
By the time of the 1992 general election, new laws had been passed to replace the poll tax with the Council Tax. This new tax started in April 1993. The VAT rate of 17.5% stayed the same, even though it was originally raised to help lower the poll tax.
The Council Tax was quite similar to the old "rates" system it replaced. The main differences were:
- Homes were put into different groups (bands) based on their value, which limited the maximum tax amount.
- The tax was based on the property's overall value, not how much it could be rented for.
- Households with only one adult received a 25% discount.
Since it started, the Council Tax has had some small changes, like adding more exemptions and discounts for certain situations.
See also
- Poll tax riots
- Peasants' Revolt – A rebellion in the 14th century partly caused by a poll tax.
- Tommy Sheridan, a Scottish politician known for protesting the poll tax.
- Bedroom tax
- Window tax
- Poll tax
Images for kids
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A leaflet explaining the Community Charge (the so-called "poll tax"), Department of the Environment, April 1989
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Graffiti against the poll tax near Huddersfield
