Why Did Thatcher Resign As Prime Minister: The Poll Tax

Question 1

What is the context to the poll tax ?

Answer 1

• Since 1925 the main source of local govenrment revenue was the ‘rates’ which taxed owners of property and businesses
• however, Thatcher calculated more than half of the electorate did not contribute to this
• she dubbed it ‘manifestly unfair’

Question 2

What did Thatcher believe ?

Answer 2

Increasing the number who contributed to local tax would increase political awareness amongst the public

Question 3

What was the issue of the poll tax ?

Answer 3

• charged the system from a variable amount based on the value of their property to a flat charge per payable adult
• the prior system was blamed on ‘socialists ideas’ by Nicholas Ridley MP
• disregarded ability to pay for example a high earning company director would pay five times less than a working class household of 5

Question 4

When was the community charge ‘poll tax’ introduced ?

Answer 4

Finance act of 1988 quickly dubbed the ‘poll tax’ replaced the system of variable tax with flat rate per head

Question 5

What did the poll tax do to the party ?

Answer 5

Caused major disputes
- many members and Tory MOs opposed the tax believing it highly unpopular and unfair
- Scottish National Party in 1988 encouraged Scot’s not to pay after receiving the community charge first out of any British country

Question 6

How did the public react ?

Answer 6

• violently with outcry
• 31 March 1990 day before it was due to take effect is Wales and England there was a major demonstration in Trafalgar Square London
• Labour began to gain in the opinion polls which was noted by Sir Geoffrey Howe in his speech of resignation
• 1.2 billion in tax went unpaid in England and Wales in the first year with millions refusing or unable to pay
• people flocked in mass groups when summoned to appear for non payment to halt the process

Question 7

How was the poll tax made worse by Thatchers attitude ?

Answer 7

‘Salt to the wound’
- Thatcher pressed on in a Churchillian manner to install the policy which critics dubbed her as an alienated and dictatorial PM
- multiple warnings from her cabinet and her party

Question 8

How was Scotland a particularly prominent example of opposition ?

Answer 8

• described a ‘Guinea pig’ for Thatchers community charge
• 1 April 1989 introduced
• seen as vastly unfair to the poor
• Warnign sign, Thatcher attended the Scottish Cup Final when the entire Hampden Park showed her red cards and chanted against the tax
• March 1989 50k people demonstrated in Glasgow in protest