In a May 1990 article Heseltine had proposed that the Poll Tax be reformed rather than abolished.Crick 1997, p. 366. He now had a remit to reform it, and invited the opposition parties to take part in his review of options (Labour did not; the Liberal Democrats did, and proposed a local income tax). Heseltine insisted that Michael Portillo, who had been a major cheerleader for the tax, be retained as Minister of State for Local Government. Portillo and Robert Key handled the detail and presented Heseltine with a list of options. Various options were leaked to the press to test public reaction, and at one point Heseltine appeared to have settled on a tax graded both according to the size of the property and the number of adults living in it. Major was exasperated by the lack of progress and intervened, and – at Major's insistence – Chancellor Norman Lamont increased VAT by 2.5 percentage points to 17.5% in his April 1991 budget so as to provide a £4.5bn subsidy to bring poll tax bills down. Eventually, as expected, the poll tax was abolished and the new Council Tax was graded according to the size of a property, with the only concession to headcount being a single-person discount. In Crick's view, the outcome was much more Sarah Hogg's and Portillo's and Major's doing than Heseltine's.
In a May 1990 article Heseltine had proposed that the Poll Tax be reformed rather than abolished.Crick 1997, p 366. He now had a remit to reform it, and invited the opposition parties to take part in his review of options (Labour did not; the Liberal Democrats did, and proposed a local income tax). Heseltine insisted that Michael Portillo, who had been a major cheerleader for the tax, be retained as Minister of State for Local Government. Portillo and Robert Key handled the detail and presented Heseltine with a list of options. Various options were leaked to the press to test public reaction, and at one point Heseltine appeared to have settled on a tax graded both according to the size of the property and the number of adults living in it. Major was exasperated by the lack of progress and intervened, and – at Major's insistence – Chancellor Norman Lamont increased VAT by 2.5 percentage points to 17.5% in his April 1991 budget so as to provide a £4.5bn subsidy to bring poll tax bills down. Eventually, as expected, the poll tax was abolished and the new Council Tax was graded according to the size of a property, with the only concession to headcount being a single-person discount. In Crick's view, the outcome was much more Sarah Hogg's and Portillo's and Major's doing than Heseltine's.