What was the poll tax?
The poll tax was a fixed tax per adult resident to pay for the services provided in their community. To do this, the government had to identify every person in each invidivdual household. Those who were employed paid 100% of the tax, whereas those who were unemployed or in education had to pay 20%.
Why was it so controversial?
The implementation of the poll tax lead to a series of riots, the most serious being in London on thee 31st March 1990. More than over 200,000 protesters filled Whitehall and Trafalgar Square and over 100 police officers were injured. A total of 240 people were arrested, which cars being turned over and set alight. As well as this, for tube stations were shut down and most of central London was cornered off. Demonstrators attacked police with bricks and cans and whilst firefighters attempted to put out cars set alight, they were attacked with wood and stones. Property damaged had an estimate of £400,000 in repairs.
In addition to this, there was also a peaceful protest which took place in Whitehall. 70,000 people took to the streets and refused to move from Downing Street.
This all began because the poll tax aimed to make local council finance more fair and accountable. For example, a widowed pensioner would not have to pay as much as a family of five. However, an estimated 4,000,000 people declined to pay, which amounted to £5 billion.
Political Consequences for the Conservatives
The party began to struggle badly after this, particularly due to many people thinking that Margaret Thatcher should resign. In 1990, Micheal Heseltine challenged Thatcher for the party leadership, however, she won by 50 votes - a narrow victory. Following this, Thatcher resigned on 22nd November 1990.
Abolition of the poll tax
The tax was abolished by John Major, which was announced in his first parliamentary speech as Prime Minister. It was replaced by the council tax, which came into effect in 1992. The new system of taxing works on property value, but is not directly linked to income.
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