The Revenue Support Grant A Betters Grants System?

Published date01 June 1989
AuthorStephen J. Bailey
Date01 June 1989
DOI10.1177/095207678900400204
Subject MatterArticles
22
The
Revenue
Support
Grant
A
Betters
Grants
System?
Stephen
J.
Bailey
Glasgow
College
’A
Council’s
powers
to
raise
taxes
locally,
and
the
grant
it
gets
from
the
National
Government
should
be
designed
to
ensure
that
the
Council
can
provide
adequate
services.
They
should
also
be
designed
to
ensure
that
local
electors
know
what
the
costs
of
their
services
are,
so
that
armed
with
this
knowledge
they
can
influence
the
spending
decisions
of
their
Council
through
the
ballot
box.’
(Cmnd 9714).
This
quote
from
the
1986
Green
Paper
illustrates
the
importance
of
both
grants
and
local
taxes
in
achieving
the
improved
local
accountability
sought
by
the
Government.
Rates
were
criticised
for
their
very
obvious
anomalies,
highlighted
by
the
Scottish
revaluation
(Bailey,
1986),
and
because
eligibility
to
vote
and
liability
for
local
taxes
were
poorly
matched.
Non
householders
could
vote
for
higher
local
spending
without
facing
higher
local
taxes.
Local
businesses
contributed
over
half
of
total
rates
on
average
but
had
no
vote.
The
Government’s
solution
has
been
to
make
all
adult
residents
pay
the
flat
rate
Community
Charge
as
a
contribution
to
locally
financed
services
(it
has
been
dubbed
the
Poll
Tax
because
of
the
close
correspondence
between
the
electoral
register
and
the
Community
Charge
Register)
and
to
protect
business
ratepayers
from
unreasonable
local
tax
burdens
(by
taking
control
of
business
rates).
Achieving
a
closer
match
between
representation
and
taxation
is
a
necessary
but
not
sufficient
condition
for
the
improvement
of
local
accountability.
The
local
tax
level
must
also
vary
in
direct
response
to
local
discretion
in
expenditure
policy.
This
could
most
easily
be
achieved
if
the
Community
Charge
financed
100
per
cent
of
the
costs
of
local
government
services.
However,
the
resulting
burden
of
the
new
lump
sum
would
be
intolerable
and
there
would
also
be
dramatic
variations
in
the
level
of
tax
between
local
authorities.
Not
being
related

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