Maines Adds Support to 'Axe The Tax' Campaign (Bromley Borough Liberal Democrats)

Bromley Borough Liberal Democrats <info@bromleylibdems.org.uk>

Maines Adds Support to 'Axe The Tax' Campaign

January 12, 2004 5:43 PM

Local LibDem Chris Maines wants to see Council Tax Axed

Cllr. Chris Maines, leader of the Liberal Democrats on Bromley Council, has thrown his weight behind the 'Axe The Tax' campaign, launched this morning by Charles Kennedy at a Westminster press call.

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 Deputy Prime Minister 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:

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

Charles Kennedy 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."

Edward Davey added:

"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.

"In a country where the average household income is around £21,700, a local income tax based on the ability to pay, is the only fair means of raising revenue.

"By using the existing income tax system, we can save at least £300 million on bureaucracy alone. And local income tax doesn't need a costly benefit system - it has fairness built in."

Chris Maines comments 'I'm sure Bromley residents will be pleased to know that there is a workable alternative to Council Tax. Local people who wish to support our campaign can visit the website at www.axethetax.org.uk