From: martin.baines@uk.sun.com (Martin Baines - Sun UK - SE Manager Cambridge)
Newsgroups: soc.culture.british
Subject: Re: The Poll Tax
Date: 21 Jan 1993 14:42:14 GMT
Organization: Sun Microsystems Ltd
Distribution: world
Reply-To: martin.baines@uk.sun.com
NNTP-Posting-Host: bottomdog.uk.sun.com

In article 13151@dcs.qmw.ac.uk, mmh@dcs.qmw.ac.uk (Matthew Huntbach) writes:
>In article <1993Jan21.092158.16400@osf.org> david@postman.gr.osf.org (David George) writes:
>>Okay, a flat rate local sales tax, say 17 % (as VAT is a present).  Local
>>authorities would then have to cut their cloth according to the amount of
>>money they take in.  I believe the German Laender receive their revenues
>>from MWSt. (VAT) so why not the U.K. ?  I would abolish VAT and the rate
>>support grant at the same time.  I also believe the UK should be organised
>>into regions with much more power over local affairs, like education, the
>>police etc.
>
>The idea of the rate support grant is that it evens up local
>authorities. Under your scheme, an authority in a wealthy area
>would have far more to spend per head of the population than
>one in a poor area.
>
>Also one of the principle choices in democracy is deciding
>between a high tax rate and a high level of services, and a low
>tax rate and low level of services. It is hardly decentralist
>to take this choice away.
>
>I do not see why regional governments should be any less
>corrupt than Westminster or town councils. Most of the powers
>you want to give to regional governements already lie with
>county councils (though the Tories are busy taking them away).
>All you are asking for is a few almagamations of counties.

I more or less agree with Matthew here: if we have a tier of government
it should have the power to raise its own finance *and* be accountable
for that finance. What we have at present is a system where most of the
finance is fixed by central government, and a little can be varied by the
local authority. This is the worst of all worlds: the local authorities
can duck responsibility for high/low spending and point the blame at
the government, and the government can argue that since they pay the
bill they call the shots.

My own prefered solution would be single tier authorities, with more or
less the powers of the current county councils combined with district
councils *except* with education removed from their control: instead
all schools would be completely self governing with a capitation fee
paid direct to the school for each pupil (parents get complete freedom
in chosing school, school gets complete freedom in subjects, budget,
selection etc). The current surcharge on VAT that goes to local
authorities would be removed, and (central) direct taxation would be
reduced as well by a level to compensate for the abolition of the rate
support grant. *All* income for local authorities would come from (a)
local income tax raised via PAYE and paid to the authority where you
are resident and (b) local business rate; both to be set by the local
authority. The only influence of central government would be an
independent national audit office with the remit to ensure honesty and
to point out bad management. Local authorities would be compelled to
produce annual reports to tax payers on use of funds, and to accompany
the report with an independent report from the audit office.

If there are any politcal parties out there interested in adopting
the above scheme I would love to know!

Martin
---

"You might say that, but I couldn't possibly comment"

Martin Baines, Sales Support Manager,
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