Scrap the Unfair Council Tax (Islington Liberal Democrats)

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

Scrap the Unfair Council Tax

February 24, 2005 4:06 PM

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.

Scrapping Council Tax will be a key pledge in the Liberal Democrats manifesto for the forthcoming general election.

Evidence gathered on the Labour Governments proposed revaluation of Council Tax next year suggests that many houses around the country, including Islington, will go up at least one council tax band when the new figures are released.

The signs from Wales where the Council Tax band revaluation has taken place this year, are not promising. Evidence from the revaluation process in Wales shows 33% of properties moving up Council Tax bands and only 8% going down. In Cardiff 64% moved up and only 2% down. Research by Cardiff Council demonstrates that some of the poorest areas in Wales were hardest hit because many houses in these areas have had above average rises in their house values since 1991.

Councillor Bridget Fox said

"We believe that tax should be fair, and take into account people's ability to pay. Council tax is not fair, it means that the poorest 10% of the population pay four times as much of their income in council tax, than the richest 10%. The changes the Labour government is proposing could make things worse not better.

"Revaluation will means that many residents will be affected by a rise in council tax based on the increased value of their home since 1991 which has nothing to do with their income or circumstances.

"In Islington the Liberal Democrats have successfully kept our pledge to keep Council Tax below London average. But the Council Tax system means that some of Islington's most vulnerable residents are having to contribute more than their fair share."