The local government

• Thatcher not only wanted to slim down local government, but to reduce its independence from central government
• The Local Government Act (1985) enabled her to abolish the councils she found to be most troublesome: the Greater London Council and 6 other metropolitan councils were dissolved
• Although this represented increased central government interference, she was more concerned by the 'capture' of some local councils by 'irresponsible' left-wingers who rejected her policies
• She cut the central government payments (from 60% to 49% of funding) and following council attempts to plug the funding gap by raising local rates, introduced rate 'caps' on 18 councils (Rate Act 1984)
• Local rates were only paid by people who owned or rented property of a certain value; many poorer people did not have to pay them at all
• Thatcher hated the fact that some councils could promise ever more generous provision of benefits and services to people who would not have to pay for them
• She felt that capping local rates was at the heart of what she was trying to accomplish; making people responsible citizens rather than lazy dependants
• Thatcher tried to widen a sense of financial responsibility through the introduction of a 'Community Charge'
• The 'poll tax' (Community charge) would be used on individuals rather than the value of the property
• As the community charge was the same for everyone, the poor paid a higher percentage of their income than the rich
• The poll tax was hugely unpopular and pass protests erupted when the tax was rolled out in 1990
• The Conservatives were forced to abandon the tax and introduce a revised council tax linked to property values instead
• Thatcher used the example of innovative Conservative councils, such as Wandsworth in London, to promote greater efficiency through the 'contracting out' of council services
• Contracting out council services meant that private firms were encouraged to bid for contracts to supply services such as Rubbish collection
• By 1985, staff numbers had fallen by one-third In Wandsworth; nationally, the total number of local government employees fell from 2.5 to 2.1 million between 1979 and 1995
• Thatcher used a number of methods to detach individuals from reliance on local government
• The measure that had the greatest impact was the Housing Act of 1980
• The Housing Act gave some people the 'Right to Buy': it enabled those who had lived in a council house for three or more years to buy their house from the council
• Right to Buy was not only to cut council spending on property maintenance, but to promote a sense of pride and responsibility through independent ownership
• Right to Buy was hugely popular
• 204,000 council houses were bought in 1982-83 alone and home ownership rose from 55% to 63% between 1979 and 1990
• While these individuals made substantial personal gains from property price increases, the lack of availability of council houses made it harder and more expensive for councils to house the poorest in society by 1997