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Local Taxation

The hon. Lady is saying, I think, that over a period of time the local government settlement becomes even more highly geared—that is, more money comes from the centre and less money comes from local government, and eventually the position switches to a greater amount of money coming from local government than from the centre, in which case local income tax rises very substantially. The whole basis of the local income tax proposals—as currently presented, for all I know, in the Cheadle by-election—is that rises are kept down to about 3.5 per cent. a year, which can be done only by smoke and mirrors.