Liberal Democrat Unveil New Alternative to Council Tax (Surrey Heath Liberal Democrats

Surrey Heath Liberal Democrats - working for you, for a better future <info@surreyheathlibdems.org.uk>

Liberal Democrat Unveil New Alternative to Council Tax

January 13, 2004 12:00 AM

Axe Council Tax Graphic Rosalyn Harper, The Liberal Democrat's Parliamentary Spokesperson at a meeting on Monday set out the Liberal Democrat's alternative to replace the unfair Council Tax.

A new Local Income Tax, set at an average of 3.75p would be levied to replace Council Tax. Based on people's real ability to pay, the move would mean tax cuts for millions of pensioners and ordinary families. Mr Kennedy, launching the new proposals with Liberal Democrat ODPM Shadow Edward Davey said the new Local Income Tax would leave 70% of households either better off or unaffected.

The Local Income Tax plans include:

1. A tax free personal allowance of at least £5,000 on implementation

2. No rise in the overall tax burden

3. A cap on income subject to local income tax at £100,000

4. Using the Inland Revenue to assess and collect local income tax

5. Estimated savings of over £300 million a year on bureaucracy

Councillor David Whitcroft, Leader of the Liberal Democrats on Surrey Heath Borough Council said:

"Council Tax is the most unpopular, unfair tax in Britain today. The Audit Commission has called the Council Tax system 'fundamentally flawed'. It is deeply regressive - a pensioner can pay as much as a cabinet minister."

"Local Income Tax is a fair, efficient, tried and tested method of local taxation. It is already used in many other countries around the world and works very well. Most importantly it is directly related to the ability to pay. Our plans for LIT will be a huge advance for most people - 70 % will pay less or be unaffected."

"A local income tax works in countries as diverse as the USA and Sweden, we believe it can work here."

At the same meeting, Councillor John Faulkner, the Liberal Democrat's Finance Spokesman on Surrey Heath Borough Council stated:

"In Surrey Heath, Council Tax rose 17.45% in 2002/3 and 15.70% in 2003/4, we have yet to hear what the next rise will be. If the Government is serious about "new localism" it has to sort out the mess of local government finance, and end councils' reliance on such an unfair tax."

"Britain's poorest 10% pay four times more of their income in council tax than the richest 10%. For pensioners, the poorest 20% pay nearly six times more of their income than the richest 20% non-pensioners."

Further information can be found on our website www.axethetax.org.uk