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CONFIDENTIAL
THIS DOCUMENT I S THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT
COPY NO
CABINET
CONCLUSIONS o f a Meeting o f t h e C a b i n e t
h e l d a t 10 Downing S t r e e t on
THURSDAY 26 JANUARY 1984
a t 10.00 am
P R E S E N T
It Hon M a r g a r e t Thatcher Prime M i n i s t e r
I Hon V i s c o u n t W h i t e l a w r e s i d e n t of the Council
MP
The Rt Hon L o r d H a i l s h a m Lord Chancellor
H
';°n S i r G e o f f r e y Howe QC MP ' y o f S t a t e f o r F o r e i g n and Uh A f f a i r s
v T h e Rt Hon Leon B r i t t a n QC MP
^ X ^ S e c r e t a r y o f S t a t e f o r t h e Home Department
ar
ftWea
^ Hon N i g e l Lawson MP o f t h e Exchequer
t Hon S i r K e i t h Joseph MP
fe^ary o f S t a t e f o r E d u c a t i o n and Science
0 r
| a r
I
James P r i o r MP y of s t a t e f o r N o r t h e r n
H o r
y
Ireland
i M i c h a e l H e s e l t i n e MP S t a t e f o r Defence o f
T h e ' > ^ f j n P e t e r Walker MP
S e c r B t a ^ y o f S t a t e f o r Energy
The Rt H w W i r g e Younger MP Secretary/^! State f o r Scotland
't N i c h
tar?
o f
W ; t
e
The Rt Hon P a t r i c k J e n k i n MP
S e c r e t a r y o f State___for t h e Environment
° l a s Edwards MP S t a t e f o r Wales h
The Rt Hon N o r m a ^ ^ 6 ^ 1 e r MP S e c r e t a r y o f S t a t e Zp-oTySocial S e r v i c e s
n
° B i f f e n MP y Seal
H
U°*
L o r
d
Cockfield
°t t h e Duchy o f L a n c a s t e r It le Q 'ood
The Rt Hon Tom K i n g
Secretary of State for/1
H q
t
H i c n a f
e l J o p l i n g MP A g r i c u l t u r e , F i s h e r lie s
The Rt Hon P e t e r Rees QC M J K ^
Chief Secretary, Treasury
The Rt Hon N i c h o l a s R i d l e y MP
Secretary o f State f o r Transport
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25
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THE FOLLOWING WERE ALSO PRESENT
hn Wakeham MP ^Secretary, Treasury
Mr John Gummer MP
M i n i s t e r o f S t a t e , Department o f Employment
( I t e m 1)
SECRETARIAT
S i r Robert A r m s t r o n g
Mr P L Gregson (Item 4) Mr A D S G o o d a l l ( I t e m s 2 and 3) Mr D F W i l l i a m s o n ( I t e m s 2 and 3) Mr M S B u c k l e y ( I t e m 4) Mr C J S B r e a r l e y ( I t e m 1) Mr R Watson ( I t e m 1) C O N T E N T S Subject
1
PARLIAMENTARY AFFAIRS Hennessy R e p o r t on t F
Page
Escape
1
°RE1GN AFFAIRS Government Communications S ^ d ^ ^ r t e r s
1
East-West R e l a t i o n s
2
Lebanon
2
COMMUNITY AFFAIRS Community Budget and U n i t e d Kingdom Re TIMING OF NON-DOMESTIC REVALUATION
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4 4
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The C a b i n e t were i n f o r m e d o f t h e b u s i n e s s t o be t a k e n i n t h e House
Commons d u r i n g t h e f o l l o w i n g week.
IE SECRETARY OF STATE FOR NORTHERN IRELAND s a i d t h a t he was due t o make s t a t e m e n t t o t h e House t h a t a f t e r n o o n about t h e Report b y S i r James lessy o n t h e escape made f r o m t h e Maze p r i s o n on 25 September 1983. Report was h i g h l y c r i t i c a l o f t h e management o f t h e p r i s o n o v e r a of y e a r s and i d e n t i f i e d many d e f i c i e n c i e s i n p h y s i c a l s e c u r i t y procedures. I t was a l s o c r i t i c a l o f many o f t h e p e r s o n n e l on day. The Governor o f t h e p r i s o n had r e s i g n e d and an A s s i s t a n t \d P r i n c i p a l O f f i c e r had a l r e a d y been moved. D i s c i p l i n a r y l i g h t be b r o u g h t a g a i n s t a number o f o f f i c e r s , b u t these a w a i t t h e outcome o f s e p a r a t e i n q u i r i e s . The Report made
^ i o n s , a l l o f w h i c h he had accepted and some o f w h i c h had
put i n t o e f f e c t . H i s s t a t e m e n t would n o t be d e f e n s i v e , b u t
lg o u t t h e s p e c i a l f e a t u r e s o f t h e Maze p r i s o n , which were
emphasised i n t h e Report i t s e l f . I t held the largest concentration of
t e r r o r i s t s i n W e s t o n Europe, i n t h e m i d s t o f a v e r y t r o u b l e d community.
The p r i s o n i t s e l f y n " a ^ ) been c o n s t a n t l y t r o u b l e d by p r o l o n g e d and w i d e s p r e a d
p r o t e s t s , which comparable w i t h a n y t h i n g happening m any o t h e r
U n i t e d Kingdom p r e N o r t h e r n I r e l a n d P r i s o n S e r v i c e had been
expanded f r o m 300 to 3,000 t o d a y , and i t had t o be accepted t h a t
the q u a l i t y was n o t u good. I t a l s o had t o be b o r n e i n mind,
however, t h a t 22 member e P r i s o n S e r v i c e had l o s t t h e i r l i v e s as
a r e s u l t o f t e r r o r i s t ac' ^ i n c l u d i n g a Deputy Governor and o t h e r s f r o m
the Maze.
The C a b i n e t -
Took n o t e .
THE FOREIGN AND COMMONWEALTH SECSgTXfcr* s a i d t h a t he would be
2. c i r c u l a t i n g f o r t h e i n f o r m a t i o n o f c o l l e a W i e ^ > a background n o t e on t h e
Government's d e c i s i o n , announced t h e pre\rf^5us day, t o e x c e p t t h e
employees o f t h e Government CommunicationsvHeadquarters (GCHQ) a t
^-ons Cheltenham f r o m t h e a p p l i c a t i o n o f t h e Employment P r o t e c t i o n A c t s and t o withdraw t h e i r r i g h t t o belong t o n a t i o n a l t r a d e s u n i o n s . This d e c i s i o n had been under c o n s i d e r a t i o n f o r some t i m e . IndysT*nLal a c t i o n by t h e C i v i l S e r v i c e u n i o n s a t GCHQ i n 1981 and 1982 hi^iir5«ilved heavy work l o s s . I n t h e course o f t h e i n d u s t r i a l a c t i o n i n t h ^ T i p W i l S e r v i c e i n 1981 t h e u n i o n s had s e l e c t e d GCHQ as an area f o r d x ^ u p ^ U o n , had caused s e r i o u s i n t e r r u p t i o n s t o an o p e r a t i o n w h i c h o f / W s ' j n a t u r e had t o be c o n t i n u o u s . S i m i l a r e x c e p t i o n s had been made by p r ^ x ^ & X (Labour) Governments i n r e s p e c t o f o t h e r i n t e l l i g e n c e and s e c u r i y y ^ e w i c e s , b u t i t had n o t been p o s s i b l e t o do t h e same f o r GCHQ w h i l e i t > * J # ^ s . o t P u b l i c l y acknowledged by t h e Government as an i n t e l l i g e n c e < 9 T R ^ n i s ; I t was because t h i s acknowledgment had been made f o l l o w i n g c o n v i c t i o n o f a GCHQ employee f o r espionage t h a t t h e a c t i o n £ GCHQ had now been t a k e n . The Government's d e c i s i o n was i n no to t h e c o n t r o v e r s y over t h e i n t r o d u c t i o n o f p o l y g r a p h o r " l i e de t e s t s f o r GCHQ employees on an e x p e r i m e n t a l and l i m i t e d b a s i s , d e t e r m i n i n g c o n s i d e r a t i o n f o r t h e Government's d e c i s i o n had been tir^y^ a
n
d
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27
CONFIDENTIAL i n w h i c h t h e C i v i l S e r v i c e unions had e x p l o i t e d t h e s e n s i t i v i t y o f GCHQ
i n 1980-81 by o r g a n i s i n g d i s r u p t i o n t h e r e as a means o f p r e s s u r e on t h e
Government i n an i n d u s t r i a l d i s p u t e i n w h i c h GCHQ employees were n o t
o t h e r w i s e i n v o l v e d . I t was i m p o r t a n t t o make i t c l e a r p u b l i c l y t h a t t h e
Government's a c t i o n had been taken s t r i c t l y on s e c u r i t y grounds and
/ > ^ V o u l d n o t be extended o u t s i d e t h e s e c u r i t y and i n t e l l i g e n c e a r e a s .
XL e:
nd °ns.
)REIGN AND COMMONWEALTH SECRETARY s a i d t h a t t h e p r e v i o u s week had
s^^/wjSfet appeared t o be a modest b e g i n n i n g o f an improvement i n t h e
a t m o ^ h ^ t s e o f East-West r e l a t i o n s . The speech o f t h e S o v i e t F o r e i g n
M i l l i s ^ e r j ^ I r Gromyko, a t the o p e n i n g s e s s i o n o f t h e Conference on
Disarmaajen£--vin Europe (CDE) i n Stockholm had been an uncompromising
r e s p o n s S ^ p ^ x h e U n i t e d S t a t e s P r e s i d e n t ' s speech o f 16 J a n u a r y , b u t t h e interview<^i£tf the S o v i e t P r e s i d e n t , Mr Andropov, p u b l i s h e d i n Pravda on 24 JanuaryNwas a l i t t l e more c o n c i l i a t o r y . The f i v e - h o u r c o n v e r s a t i o n between Mr Gromyko and t h e U n i t e d S t a t e s S e c r e t a r y o f S t a t e , Mr S h u l t z , °n 18 J a n u a r y had covered a wide range o f s u b j e c t s i n a r e a s o n a b l y c o n s t r u c t i v e way, ^ i f t c ^ l u d i n g the S o v i e t Government's r e a d i n e s s t o resume t h e M u t u a l and Baya fd Force R e d u c t i o n n e g o t i a t i o n s i n V i e n n a . B u t t h e r e was no s i g n S o v i e t r e a d i n e s s t o r e t u r n t o t h e S t r a t e g i c Arms Reduction Talks o r j o t i a t i o n s on I n t e r m e d i a t e Range N u c l e a r F o r c e s . I n h i s own m e e t i n g tm, Mr Gromyko had r e f r a i n e d f r o m b l u s t e r a l t h o u g h he had been d i s m i s s i v e on human r i g h t s cases. One o f t h e arguments f o r b r o a d e n i n -ange o f M i n i s t e r i a l c o n t a c t s w i t h t h e S o v i e t Union was so as t o ensur >Mr Gromyko was n o t t h e s o l e c h a n n e l o f communication w i t h t h e Sov i d e r s h i p . A t Stockholm t h e CDE h a d g o t o f f t o a good s t a r t f r o m t h ^rn p o i n t o f v i e w and A l l i a n c e c o h e s i o n had been m a i n t a i n e d . The s i x inniversary o f the establishment o f d i p l o m a t i c r e l a t i o n s between t :ed Kingdom and t h e S o v i e t U n i o n v o u l d f a l l on 2 F e b r u a r y and ^ l d be o f f i c i a l f u n c t i o n s t o mark t h e o c c a s i o n b o t h i n London and i n Mo I t w o u l d be i m p o r t a n t t o c o o r d i n a t e any M i n i s t e r i a l a t t e n d a n c e ^ j y i e t f u n c t i o n s i n London, w h i c h
should n o t exceed the l e v e l o f S o v i e t
imental attendance a t B r i t i s h
f u n c t i o n s i n Moscow. I t would be h e l c o l l e a g u e s who r e c e i v e d
i n v i t a t i o n s t o S o v i e t f u n c t i o n s consulted F o r e i g n and Commonwealth
Office before replying.
v
6;
THE FOREIGN AND COMMONWEALTH SECRETARY s a i d t h a e h a d been t a l k s i n
London on 20 J a n u a r y w i t h the Lebanese F o r e i g n Dr Salem, and
the U n i t e d S t a t e s S p e c i a l R e p r e s e n t a t i v e i n t h e M i a s t , Mr R u m s f e l d ,
The p r o s p e c t s f o r p r o g r e s s i n t h e r e c o n c i l i a t i o n p and i n
i m p l e m e n t i n g t h e S e c u r i t y P l a n i n t h e Lebanon t o t h e a t w h i c h i t
m i g h t be p o s s i b l e t o w i t h d r a w t h e M u l t i n a t i o n a l Force emained p o o r .
The moderate Arab S t a t e s were anxious t h a t t h e MNF shou' Domestic
P u b l i c o p i n i o n i n a l l f o u r c o n t r i b u t i n g c o u n t r i e s was une out t h e
MNF, and t h i s unease w o u l d be i n c r e a s e d i f t h e r e were any r disasters
Eor t h e moment i t was n e c e s s a r y t o m a i n t a i n t h e MNF commitm ile
k i n g t o promote t h e r e c o n c i l i a t i o n p r o c e s s and t o c r e a t e itions
m w h i c h t h e MNF c o u l d be r e p l a c e d by a U n i t e d N a t i o n s f o r c e , reign
and Commonwealth O f f i c e was i n c l o s e t o u c h w i t h t h e Governments
c o n t r i b u t i n g c o u n t r i e s t o t h i s end. Meanwhile, t h e Lebanese
had been warned t h a t a t t e m p t s b y t h e Lebanese army t o e x t e n d t h e i r
W o r
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a u t h o r i t y by f o r c e i n t h e s o u t h e r n suburbs o f B e i r u t and i n t h e Shouf
c o u l d i n c r e a s e t h e r i s k t o t h e B r i t i s h MNF c o n t i n g e n t and m i g h t make
necessary t o r e c o n s i d e r t h e c o n t i n g e n t ' s f u t u r e .
The C a b i n e t 1.
Took n o t e .
I n v i t e d any M i n i s t e r i n v i t e d t o a t t e n d S o v i e t
2. unctions i n connection w i t h the s i x t i e t h anniversary
the establishment o f Anglo-Soviet d i p l o m a t i c
r e l a t i o n s t o c o n s u l t t h e F o r e i g n and Commonwealth
cfiktary before responding.
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3. THE PRIME MINISTER s a i d t h a t she had met P r e s i d e n t M i t t e r r a n d o f
France on 23 January as p a r t o f t h e b i l a t e r a l c o n t a c t s w h i c h he was
u n d e r t a k i n g now t h a t France h e l d t h e P r e s i d e n c y o f t h e C o u n c i l o f
M i n i s t e r s . P r e s i d e n t M i t t e r r a n d was conscious o f t h e r i s k , p a r t i c u l a r l y
o t h e European P a r l i a m e n t e l e c t o r a l campaign, o f a f a i l u r e o f t h e
opean C o u n c i l under h i s c h a i r m a n s h i p , and seemed t o want a s e t t l e m e n t
r c h . He had n o t y e t f u l l y g r a s p e d , however, one o f t h e f u n d a m e n t a l
t i o n s w h i c h t h e U n i t e d Kingdom had s e t f o r a s o l u t i o n . There c o u l d
o n s i d e r a t i o n by t h e U n i t e d Kingdom o f an i n c r e a s e i n t h e
's own r e s o u r c e s i f t h e r e were n o t a d i f f e r e n t and f a i r e r s h a r i n g
g e t a r y b u r d e n . The U n i t e d Kingdom was l o o k i n g f o r a l o n g - t e r m s o l u t i ^ ^ ^ h i c h c o r r e c t e d t h e budget i n e q u i t y , t a k i n g a c c o u n t o f c a p a c i t y t o p a y j C ^ ^ I had made c l e a r t o P r e s i d e n t M i t t e r r a n d t h a t t h e r e was no p o s s i b i l ^ y ^ c T U n i t e d Kingdom agreement t o a s e t t l e m e n t w h i c h i n c l u d e d o n l y a tera&prary, ad hoc r e l i e f t o t h e b u d g e t a r y p r o b l e m b u t a permanent i n c r e a s e i r r t h e Community's own r e s o u r c e s . The p r e s e n t f i n a n c i n g arrangements were n o t i n t h e T r e a t y o f Rome i t s e l f . Other member s t a t e s were s e e k i n g a m a j ^ change i n t h e Community's Own Resources D e c i s i o n o f 1970 by r a i s e 1 p e r c e n t c e i l i n g on Value Added Tax and t h e U n i t e d Kingdom wl s i n g o t h e r changes i n t h e same D e c i s i o n . She had a l s o made c l e a r t o dent M i t t e r r a n d t h a t she d i d n o t share h i s v i e w t h a t t h e European i n Athens had been c l o s e t o an agreement. The d i f f e r e n c e s between .states had been s u b s t a n t i a l . THE FOREIGN AND COMMQ ECRETARY s a i d t h a t a t t h e C o u n c i l o f
Ministers (Foreign A f f a i r 3 January t h e French P r e s i d e n c y had made
c l e a r how i t i n t e n d e d t o c rward t h e p o s t - S t u t t g a r t n e g o t i a t i o n s ,
The n e x t steps would be a se b i l a t e r a l c o n t a c t s and an i n f o r m a l
meeting o f Foreign M i n i s t e r s 9 February. I t would be v e r y h a r d
work t o g e t an agreement a t the^ an C o u n c i l i n March c o v e r i n g t h e
main p o i n t s o f t h e p o s t - S t u t t g a r & g & t i a t i o n s w i t h o u t more i n t e n s i v e
p r e p a r a t i o n . He had pressed f o r u?£heV d i s c u s s i o n w i t h i n t h e Community. I t was p r o b a b l e t h a t e was p u r s u i n g two o b j e c t i v e s
a t t h e same t i m e , a i m i n g f o r an agre n March b u t a l s o p r e p a r i n g
the way f o r p l a c i n g r e s p o n s i b i l i t y f o r e on t h e B r i t i s h Government
i f no agreement were reached. I n d i s c u on i t was p o i n t e d o u t t h a t
i t w o u l d be i m p o r t a n t t o c o n t i n u e t o invo e F i n a n c e M i n i s t e r s i n t h e
work, p a r t i c u l a r l y s i n c e t h e p r o p o s a l o f t h e F r e n c h F i n a n c e M i n i s t e r ,
Monsieur D e l o r s , on c o n t r o l o f spending had b e e n ^ s ^ p o s i t i v e e l e m e n t .
1
The
Cabinet -
Took n o t e .
J85 OP
4. The Cabinet c o n s i d e r e d a memorandum by t h e . S e c r e t a r y ^ ^ ^ S t a t e f o r t h e Environment and t h e S e c r e t a r y o f S t a t e f o r Wales (C(84) f l r ^ n ) \ h e d a t e of t h e n e x t r e v a l u a t i o n f o r r a t e s o f non-domestic p r o p e r t y ^ W r ^ a & l a n d and Wales. T h e i r d i s c u s s i o n and t h e c o n c l u s i o n s reached a r e rec< separately.
Cabinet O f f i c e
26 January 1984
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I S DOCUMENT I S THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT
COPY NO
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CABINET
LIMITED CIRCULATION ANNEX
CC(84) 3 r d C o n c l u s i o n s , M i n u t e 4
'Thursday
26 January 1984 a t 10.00 am
The C a b i n w ^ e ^ n s i d e r e d a memorandum by t h e S e c r e t a r y o f S t a t e f o r t h e
EnvironmenbAand t h e S e c r e t a r y o f S t a t e f o r Wales (C(84) 1) on t h e date o f
the n e x t r e v a l u a t i o n f o r r a t e s o f non-domestic p r o p e r t y i n England and
Wales.
THE SECRETARY OF FOR THE ENVIRONMENT said- t h a t t h e l a s t g e n e r a l
r e v a l u a t i o n of pr\ sfor r a t e s i n England and Wales had t a k e n p l a c e i n
1973. The Governmei, p u b l i c l y announced, i n t h e White Paper on Rates
(Cmnd 9 0 0 8 ) , i t s decJ t h a t r a t e s should remain f o r t h e f o r e s e e a b l e
f u t u r e t h e main source^ :al revenue f o r l o c a l government. This
imposed an o b l i g a t i o n OT fovernment t o c o r r e c t d i s t o r t i o n s i n t h e t a x
base; and Cmnd 9008 had und> :en t h a t t h e work r e q u i r e d f o r a n o n domestic r e v a l u a t i o n would' i n t r a i n . The o n l y q u e s t i o n was t h e
e f f e c t i v e d a t e o f t h e revalx He f a v o u r e d 1 A p r i l 1987, t h e e a r l i e s t
B r i t i s h I n d u s t r y and o t h e r
f e a s i b l e d a t e . The Confederal ;rce, t h e l o c a l a u t h o r i t y a s s o c i a t i o n s ,
r e p r e s e n t a t i v e s o f i n d u s t r y anc had a l l welcomed t h e r e c o g n i t i o n
and t h e p r o f e s s i o n a l b o d i e s inte< nejraed and had p r e s s e d f o r i t t o t a k e
t h a t a non-domestic r e v a l u a t i o n wa £flerwiand a r e v a l u a t i o n would produce Place as soon as p o s s i b l e . On t h e s u b s t a n t i a l changes i n r e l a t i v e r a t e a W ^ e ^ a l u e s between d i f f e r e n t t y p e s o f p r o p e r t y and d i f f e r e n t p a r t s o f t h e c o C ^ ^ y , and t h u s s u b s t a n t i a l s h i f t s i t h e d i s t r i b u t i o n o f t h e burden o f non\u0^dstic r a t e s . Older i n d u s t r y and s m a l l b u s i n e s s e s o u t s i d e c i t y centresCwpuld b e n e f i t f r o m a r e v a l u a t i o n . Large r e t a i l o p e r a t i o n s and commercial p r o p e r t i e s on prime s i t e s would tend t o l o s e . The West M i d l a n d s and t h e N o r t h o f England would t e n d t o g a i n and t h e South o f England t o l o s e . Complain££-4rom t h o s e who l o s t would no doubt o u t w e i g h g r a t i t u d e f r o m those wh
t h e r e f o r e be argued t h a t a more s u i t a b l e e f f e c t :
would be A p r i l
1989. But i t would n o t be easy t o j u s t i f y such a
from those who knew t h a t t h e i r r a t e s were e x c e s s i v t „ a g a i n s t c r i t i c i s m
based on an o u t - o f - d a t e v a l u a t i o n . The i s s u e s raised. ise they were
non-domestic r e v a l u a t i o n were q u i t e d i f f e r e n t f r o m t h e much more d i ^ ^ r r c A t q u e s t i o n s t h a t would be posed by a domestic r e v a l u a t i o n , on which^heOintended t o c o n s u l t c o l l e a g u e s i n due c o u r s e ; and t h a t mechanisms exitt&fi&p ensure t h a t domestic r a t e p a y e r s were n o t a f f e c t e d even i n d i r e c t l y y & , lon domestic r e v a l u a t i o n .
v
v
l r
Some 700 a d d i t i o n a l s t a f f , 400 o f them p r o f e s s i o n a l l y q u a l i f i e
r e q u i r e d i n t h e V a l u a t i o n O f f i c e , I n l a n d Revenue, f o r t h e non-dor
r e v a l u a t i o n . They would need t o work f o r two y e a r s b e f o r e t h e r e v
on
took e f f e c t , and would then have t o d e a l w i t h t h e i n e v i t a b l e a p p e a r s ' w £ ? k
h i c h would f o l l o w on t h e i n t r o d u c t i o n o f a new l i s t . The C h i e f v < ^
w
<
CONFIDENTIAL
S e c r e t a r y , T r e a s u r y c o n s i d e r e d t h a t t h e r e was n o t h i n g t o choose between
1987 and 1989 f o r t h i s purpose: t h e s t a f f would i n e i t h e r case a f f e c t t h e
C i v i l S e r v i c e manpower f i g u r e s a t 1 A p r i l 1988.
d e c i s i o n s h o u l d be announced as soon as p o s s i b l e a f t e r t h e Rates t e r e d Committee.
Bill
SECRETARY OF STATE FOR WALES s a i d t h a t he s t r o n g l y s u p p o r t e d t h e
i t s advanced by the S e c r e t a r y o f S t a t e f o r t h e E n v i r o n m e n t . The
.was u n d e r g o i n g a p e r i o d o f u n u s u a l l y r a p i d s t r u c t u r a l change,
y}^SyQ s h i f t s i n t h e r e l a t i v e v a l u e s o f non-domestic p r o p e r t y o f d-iffere*£&\types and i n d i f f e r e n t p a r t s o f t h e c o u n t r y . The l o n g e r a a l u a y ^ o x was d e l a y e d , t h e g r e a t e r t h e e v e n t u a l upheaval would b e . r e v
I n d i s c u s * s ^ ^ ^ £ h e f o l l o w i n g main p o i n t s were made a. TQe p o l i t i c a l c o n s i d e r a t i o n s were n i c e l y b a l a n c e d . A l t h o u g h a
r e v a l u a t i o n would no doubt provoke r e s e n t m e n t i n such areas as t h e
South E a s t , w h i c h on average would t e n d t o l o s e , d e l a y would provoke
resentment Lr£^?he areas w h i c h stood t o g a i n .
b. EstimateS=/^l~y|hanges i n r e l a t i v e r a t e a b l e v a l u e s and o f t h e
e f f e c t s o f chal*]g£^/itt the r a t i n g system on t h e burden o f r a t e s were
always u n r e l i a b l e ^ < e m d n o t t o o much w e i g h t c o u l d be p u t on them. An
i m p o r t a n t consideraJSJrtVwas t h a t l o c a l government f i n a n c e , e s p e c i a l l y
r a t e - c a p p i n g and t h ^ a V c o . i t i o n o f t h e G r e a t e r London C o u n c i l and t h e
M e t r o p o l i t a n County Co s, would i n e v i t a b l y be a t t h e c e n t r e o f
the n e x t G e n e r a l Elec mpaign, whenever t h e E l e c t i o n was h e l d ,
The Government would ne" e a b l e t o demonstrate t h a t t h e i r
p o l i c i e s had b e n e f i t e d r I t would be d i f f i c u l t t o do so
i f comparisons w i t h t h e e i n v a l i d a t e d by changes i n t h e
r a t i n g base.
A d e c i s i o n i n f a v o u r o f 1S&3 jrtjuld c a r r y t h e r i s k t h a t t h e c. Government would be regarded as deferred the r e v a l u a t i o n f o r n a r r o w p o l i t i c a l reasons. Agains^r^fc^rat- i t was suggested t h a t t h e r e were good a d m i n i s t r a t i v e arguments v f ^ f / s u c h a d e c i s i o n . The w i d e r use o f computers i n t h e I n l a n d Revemre- would y i e l d . s t a f f s a v i n g s i n 1986-87 and 1987-88, w h i c h c o u l d w e l l g i v e r i s e t o r e d u n d a n c i e s . There were management arguments f o r an e f f e c t i v e d a t e o f 1989 f o r the r e v a l u a t i o n , s i n c e t h i s would enable thepiwmpower r e q u i r e d f o r the r e v l u a t i o n t o be o f f s e t a t l e a s t t o soifaf extent by t h e s t a f f savings from computerisation. d. I t was argued t h a t i t was u n d e s i r a b l e t o Y e ^ o y l t an a d d i t i o n a l 700 s t a f f t o c a r r y o u t t h e r e v a l u a t i o n . The pos^YM^Kty °f c o n t r a c t i n g o u t work on the r e v a l u a t i o n t o t h e p r : r y £ k £ ^ 6 e c t o r s h o u l d be f u r t h e r examined, even though i t had p r e v i o u s l y b e ^ j v ^ s t i m a t e d t h a t t h a t would e n t a i l a d d i t i o n a l c o s t s , e. I n S c o t l a n d a g e n e r a l r e v a l u a t i o n o f domestic and estic
r a t e s was t o t a k e p l a c e i n A p r i l 1985. I t was a r g u a b l e
England and Wales a l s o the non-domestic r e v a l u a t i o n s h o u l
t o c o i n c i d e w i t h t h e domestic r e v a l u a t i o n , and t h a t t h i s wo
d i s a r m c r i t i c i s m o f t h e d e l a y i n t h e non-domestic r e v a l u a t i o n
the o t h e r hand t h e domestic r e v a l u a t i o n i n England and Wales ra,
CONFIDENTIAL
d i f f i c u l t i s s u e s which M i n i s t e r s had y e t t o c o n s i d e r ; i t s t i m i n g was
u n c e r t a i n , and t h e White Paper had i m p l i e d t h a t t h e non-domestic
r e v a l u a t i o n would come e a r l i e r .
THE PRIME MINISTER, summing up the d i s c u s s i o n , s a i d t h a t on b a l a n c e t h e b i n e t c o n s i d e r e d t h a t the n e x t r e v a l u a t i o n o f non-domestic p r o p e r t y i n l a n d and Wales s h o u l d be r e l a t e d t o an e f f e c t i v e date not e a r l i e r t h a n i l 1989. T h i s d e c i s i o n should be announced once the Rates B i l l had t e d i t s passage t h r o u g h P a r l i a m e n t . The S e c r e t a r y o f S t a t e f o r t h e ment should re-examine t h e p o s s i b i l i t y o f c o n t r a c t i n g out work on th at i o n t o t h e p r i v a t e s e c t o r .
e^s/bspLu
binet /
l.'^5v^g reed t h a t the n e x t r e v a l u a t i o n f o r r a t e s o f
non-e6m^stic p r o p e r t y i n England and Wales s h o u l d
be relXted t o an e f f e c t i v e date o f
1 ApriT1989.
t h i s d e c i s i o n should be announced
11 had completed i t s passage t h r o u g h
Agreed 2. once t h e Ra Parliament.
3.
I n v i t e d
thV-Chief^
c o n s u l t a t i o n t h e
S e c r e t a r y
p o s s i b i l i t y to
Cabinet
S e c r e t a r y ,
with'^'tiie ^ S e c r e t a r y
o f
t h e p r i v a t e
o f
S t a t e
S t a t e
i n
f o r
f o rt h e E n v i r o n m e n t ,
c o n t r a c ^ i ^ k s e c t o r s
T r e a s u r y
o f
o u t w o r k
o n
Office
2? January 1984
CONFIDENTIAL
t h e
W a l e s
a n d
t o r e - e x a m i n e r e v a l u a t i o n
t h e
