Lib Dems call to scrap unfair Council Tax (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

Lib Dems call to scrap unfair Council Tax

March 23, 2004 12:00 AM

Islington Liberal Democrat Councillors have repeated their call for the unfair Council Tax to be scrapped, and replaced with Local Income Tax, which is fairer, and based on residents' ability to pay. The level of Council Tax that residents pay does not take into account their income. Residents with very low income - such as many pensioners - can end up paying the same as residents with very high salaries like businessmen, lawyers and accountants. Councillor Bridget Fox said "We believe that tax should be fair, and take into account people's ability to pay it. "National income tax is a fair way to pay for the Government, and a local income tax would be the fairest way to pay for local government." "Council Tax is expensive to administer - if it were abolished, it has been estimated that Councils around the country could save £300 million. Local Income Tax would be administered through the existing Income Tax system, which is already set up to deal with this. "Under Council Tax, poorest 10% of the population pay four times as much of their income in Council Tax, than the richest 10% of the population. This is clearly unfair. "In Islington the Liberal Democrats have successfully kept Council Tax as low as possible. But the Council Tax system - introduced by the Conservatives and kept on by Labour - means some of Islington's most vulnerable residents are having to contribute more than their fair share."Councillor Margot Dunn, the Council's lead spokesperson for older people added:"I remember the days under Labour when people in Islington were forced to pay the highest council tax in London. "Thankfully older people can now guarantee that it will be kept below the London average and they'll be paying around £100 less than their neighbours in nearby Labour boroughs. "But I know many elderly people who'll still struggle because council tax hits us the hardest. It's not fair and it's got to go." FACTSUnder Lib Dem proposals, everyone who pays national Income Tax would also pay a supplement for Local Income Tax. it is estimated that the average level would be 3.75%. The exact amount that a resident would pay would depend on the precise levels set by their local Council each year. The existing national Income Tax system is already set up to be able to collect Council Tax additionally.