CAB128-94_A1b — Page 87

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authorities would retain nearly one-half of the gain in the first year in which the community charge would be payable. Under the original proposals for the safety net, by contrast, virtually none of the gains would have come through in that year. It would be important to get across that the whole of these gains were attributable to the replacement of the present rating system by the community charge and to emphasize that the Secretary of State for

for the Environment had responded very Rositively to the criticisms of the original proposals for the fety net. It would also be important to continue to make the point that the community charge amounted to only a fairly low ortion of local government expenditure and that the very

ore substantial Exchequer contribution was funded out of taxation levied at progressive rates. Except in the case of autorities with low rateable values and authorities taking over educational responsibilities

responsibilities from ILEA where a five year transitional period was envisaged, the Government had been careful to id making any commitments about the nature of any transitional protection beyond 1990-91. Very careful considerathuld need to be given to the implications for each area before decisions could be reached on the extent of any such protection beyond that year: meanwhile, the Government should continue avoid making any commitments about the position after

However, the main protest against the

Community charge would come from the inevitable redistribution which would result moving from a tax on property to a tax on people.

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It would be important to ensure that recipients of income support fully eated that the recent adjustment to their benefit was designed offset the contribution which they would be required to mateyards their community charge: it would be helpful if the Secretary of State for Social Security could circulate briefing mat to colleagues explaining how

the new arrangements would oper

The Cabinet -

1. Endorsed the Prime Minister's summing up of the discussion.

2. Invited the Secretary of State

ocial

Social Security to

circulate briefing material to collegues about the recent increase in income support which was designed to cover recipients' contribution to their community

age.

ike in

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2. THE SECRETARY OF STATE FOR EMPLOYMENT said that

former Dock Labour Scheme ports was now in its son week. There had been some 9,000 registered dock workers prior

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