Liberal Democrats Unveil New Alternative To Council Tax

12.00.00am GMT Tue 13th Jan 2004

The Liberal Democrats have set out the Party'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. The new proposals would leave 70% of households either better off or unaffected.

The tax would be set by Richmond Council but collected by the Inland Revenue, saving the borough many thousands of pounds in administration costs. The Liberal Democrats have commissioned independent experts to calculate local income tax rates for each borough.

The Local Income Tax plans include:

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

· No rise in the overall tax burden.

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

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

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

Susan Kramer, Liberal Democrat Prospective Parliamentary Candidate for Richmond Park, said: "Many older people in Richmond are looking at their staggering council tax bills and saying 'can't pay, won't pay".

"Just because your house has risen in value doesn't mean you have a large income, especially if you are a pensioner. If we don't change this unfair council tax, older and less well off people will be driven out of their homes. Local Income Tax is directly related to the ability to pay."

ENDS.

For further information call Susan Kramer on 07770 941 006