The Peel report recommended that a large reduction in the number of licensed houses should be immediately effected, and that no compensation should be paid from the public rates or taxes, the money for this purpose being raised by an annual licence-rental levied on the rateable value of the licensed premises; it at once became a valuable weapon in the hands of advanced reformers.
He himself advocated with some force that it would be wiser and more popular to fix the county franchise at 20 and the borough franchise at 6 rateable value; and he contended that such a settlement could be defended on the old principle that taxation and representation should go together, for 20 was the minimum rent at which the house tax commenced, and a rateabie value of 6 was the point at which the householder could not compound to pay his rates through his landlord.
From this is deducted the average annual cost of repairs, insurance and renewals, the balance constituting the rateable value.
The expenses in a rural parish are defrayed by means of a rate raised with, and as part of, the poor rate, with a qualification to the effect that agri cultural land, market gardens and nursery grounds are to be assessed to the rate at one-third only of their rateable value.
By the Metropolitan Poor Act 1867, the metropolitan common poor fund, to which each union in London contributes in proportion to its rateable value, was established.