Royal Commission On London Government - Report - Majority Report - Equalisation Area

Equalisation Area

The report recognised the great inequality in the amount paid by ratepayers of different metropolitan boroughs. When they examined the rates paid in the outlying districts of Greater London, the variations were even more marked. These inequalities were, in the commissioners' view "unjustifiable". They proposed the creation of an equalisation area whereby districts "closely united to London by business ties should become partners with London". This would comprise the County of London and the fifty-five urban areas wholly or partly within 10 miles of Charing Cross, namely:

• The county boroughs of Croydon, East Ham and West Ham.
• In Essex: the urban districts of Barking Town, Chingford, Ilford, Leyton, Walthamstow, Wanstead and Woodford.
• In Hertfordshire: the urban districts of Barnet and East Barnet Valley.
• In Kent: the Municipal Borough of Bromley and the urban districts of Beckenham, Bexley, Chislehurst and Sidcup.
• In Middlesex: the municipal boroughs of Acton, Ealing and Hornsey; and the urban districts of Brentford, Chiswick, Edmonton, Enfield, Finchley, Friern Barnet, Greenford, Hampton Wick, Hanwell, Harrow-on-the-Hill, Hendon, Heston & Isleworth, Kingsbury, Southall-Norwood, Southgate, Teddington, Tottenham, Twickenham, Wealdstone, Wembley, Willesden and Wood Green.
• In Surrey: the municipal boroughs of Kingston upon Thames, Richmond and Wimbledon; and the urban districts of Barnes, Beddington & Wallington, Carshalton, Ham, The Maldens & Coombe, Merton & Morden, Mitcham, Penge, Surbiton and Sutton.

Within this area two rates would be levied: an Equalisation Rate (General) of 1 shilling and 6 pence in the pound and an Equalisation Rate (Poor) of 1 shilling in the pound. These two rates, it was estimated, would raise about 8 million pounds. The product of the general rate would be distributed among the various local authorities of the equalisation area in proportion to their day population, thereby making those who lived in outer London but worked in the centre, contribute to services in the central boroughs. The product of the poor rate was to be distributed in proportion to the night population of each poor law union: one third being distributed generally and two thirds to unions containing overcrowded areas. These were defined as areas where the population density was more than two persons per room.

The commissioners noted that their scheme could be put into operation rapidly using figures already gathered, and did not involve the creation of any new local or central authorities or officers. It would also discourage excessive expenditure as there would be a uniform rate across the capital and no single local authority would benefit from a general increase.