Thursday, 9 December 2021

Margaret Thatcher ‘threatened with fine’ for failing to register poll tax

MARGARET Thatcher was threatened with a fine for failing to register for the poll tax, despite making it her flagship local government reform, newly released official documents have revealed. The prime minister was warned she would be in breach of the law unless she completed her registration form on time, according to files at the National Archives in Kew, west London. The embarrassing oversight – due in part to a bureaucratic wrangle between the Cabinet Office and Westminster City Council – was quickly rectified, but it marked an inauspicious start for a measure widely regarded as the biggest policy blunder of her 11 years in power – one which finally cost her the premiership. In early 1989, as the political storm was gathering strength, Westminster City Council – like other authorities around the country – began issuing registration forms in preparation for the launch of the tax in England and Wales the following year. One form covering the various residencies in and around Downing Street – including No 10, which Mrs Thatcher and her husband Denis had nominated as their main home – was sent to the Treasury. But the Cabinet Office complained that it was “most inappropriate” to issue a single form “asking a number of essentially personal questions” on behalf of individual occupants.

Individual forms were then despatched, but when there were still no details forthcoming, the council registration officer, David J Hopkins, warned he would be forced to act. In a letter dated May 22, 1989, he said: “My records show that the Community Charge Registration form recently sent to you has not been returned.  “I wish to advise you are required by law to supply the relevant information within 21 days of this request and failure to do so may lead to a penalty being imposed.” The letter was addressed to the “Resident/Owner” at “Rooms First Floor, 10 Downing Street, London W1 9MN”. Officials quickly arranged for the prime minister to complete the form, only to discover the council had sent the wrong one and she had to do it all again. Mrs Thatcher responded cheerfully enough, noting her first effort had been “a good practice run”. She could not, however, dismiss the wider political crisis so easily. The poll tax – or community charge, as it was officially known – was brought in to replace the old system of rates. Mrs Thatcher had hoped it would encourage voters to kick out high-spending Labour councils by making them financially more accountable to the electorate. But as it became apparent that residents across the country – including in many traditional Tory areas – were facing huge increases in their bills as a result of the changes there was a furious political backlash, with a wave of protests.

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