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above their 1989-90 budgets.
In practice, authorities were likely to spend above this and the threshold was therefore likely to be higher than the announced figure.
Continuing, THE SECRETARY OF STATE FOR THE ENVIRONMENT said that he would have liked to have set the threshold as low as possible so as to maximise the protection given. But a low threshold would have increased the cost significantly. He had now agreed with the Chancellor of the Exchequer on a threshold of £3 a week for an Andividual or pair of individuals. The cost of a scheme on this
asis should be just under £300 million a year in England including
ministration costs and net of offsetting reductions in benefit yments, although the estimates could not be precise at this stage.
had assumed that there would need to be a comparable scheme in Wales, and that the Secretary of State for Scotland might wish to deploy a proportionate share of additional resources in Scotland next year to improve the operation of the community charge there. He understood that the Secretary of State for Scotland was content with this proposal).
THE SECRETARY STATE FOR THE ENVIRONMENT said that he believed that these proposals were the minimum needed to deal with the political press on the community charge, and would need careful and sustained premation by all members of the Government. Time was now of the essence both politically and operationally. There would need to be amendments to the Local Government & Housing Bill to provide enabling powers for the scheme this month, and then an Order as soon as possible in the new session to put through the details. It was also essential ha he local authorities should start working on the implementation of scheme as soon as possible. They would have to handle over 3 mil cases, and possibly many more
unsuccessful applications; and some were already struggling with the arrangements for the Community charge. The Government would have to pay for their extra administrativ posts but even so must be prepared for considerable critic
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from them. Provided the details of the scheme could be settled me, the Minister for Local Government should announce the two changes on the financing of the area safety net in the second year, and the new individual relief - at the Conservative Party Conference on 11 October, at the same time as Lord Hesketh announced them in the House of Lords. Details of the scheme should be published at the same time th a document that would go to every local authority and others concerned. Meanwhile nothing should be said in public about the decisions.
ONE
In discussion, the following main points were made
a.
This further measure of help for Community
ge payers came
in addition to the substantial help which the Government had already agreed to provide in other ways.
The cost of community
Charge benefit in 1990-91 would be about £500m more than the cost
of rate rebates. The Government had also announced
pay some £200m in grants to the Inner London authorities
2
it would
low
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