Speeches, etc.

Margaret Thatcher

Speech in Romford

Document type: Speeches, interviews, etc.
Venue: Romford
Source: Conservative Party Archive: CCOPR GE149/74
Editorial comments: Embargoed until 1600 3 October 1974. Press release described as "extract".
Importance ranking: Major
Word count: 434
Themes: General Elections, Local government finance

Rates

Ratepayers' pockets have been stretched to breaking point this year. The next Conservative Government will release them from this rates rack.

We have decided to take the historic step to abolish the present rating system over a five year Parliament.

The need to reform local government finance is agreed between the parties, who are united in the belief that rates are unfair and alternative methods of raising local revenue should be explored.

This year's savage rate demands led to uproar from ratepayers on a scale unprecedented in modern times.

We have decided that this minority should no longer continue to shoulder an unfair burden. Only one elector in three is a ratepayer.

Any future local revenue should be based not on property but on the ability of people to pay.

A Committee of Inquiry is already looking into alternative methods of financing local government and will report to the Government in about 12 months.

With the full backing of a Conservative Government pledged to abolish the present rating system, that Committee will have an added incentive to present alternatives to Ministers. [end p1]

We would then invite the widest public consultation before a Conservative Government came to a final decision and put its legislation before Parliament.

To save Mr. Crosland further apoplexy I can say this cannot be done by Christmas.

But it will be done by Christmas 1979.

As a sign of good faith we shall start by taking education from the rates to the Exchequer, and the police and fire services will get increased government aid.

Ratepayers can, therefore, look forward to far more moderate rate demands next year. On top of a 9½%; maximum mortgage interest rate this should bring substantial savings to people's pockets at a time of high inflation.

Powerful minorities are today able to get their own way, but ratepayers are one of the largest yet most defenceless minorities in the country. The next Conservative Government will be their champion.

Rates and taxes taxes together form the whole of public expenditure. A straight transfer of rates to the Exchequer does not, therefore, increase public spending.

But it is surely wrong that, for example, in a local authority area of 180,000 taxpayers only about 60,000 should pay rates for local services which all use, or can use.

It is right that the burden should be more equally distributed. That is our aim.

Each year rates have become like a game of Russian roulette. Each squeeze of the trigger brings a bigger rate demand. With this year's heavy increase five chambers have been squeeze.

It would be folly to await the inevitable.

That is why we have decided to act.