COUNCIL TAX TINKERING MEANS NO IMPROVEMENT - HUHNE

12.00.00am UTC (GMT +0000) Fri 23rd Mar 2007

Liberal Democrats in Eastleigh are calling for council tax to be scrapped. The call has been made in response to plans by a government review to revalue homes and add two new bands to the council tax system.

Chris Huhne MP speaking at a meeting of Liberal Democrat members in Eastleigh, slammed the review as "tinkering that will fail to fix the problem of how to pay for local council services."

Liberal Democrats believe council tax is a system that is beyond repair.

Mr Huhne said, "The review has failed to address the central problem with council tax. It is unfair and not based on ability to pay.

"Council tax hits those on lower and middle incomes far more than it hits the rich. It is one of the most unpopular, bureaucratic and expensive systems for paying for local council services.

"But instead of wholesale change, all the review has done is to tinker with a system to try to make it work better.

"Council tax was created by the Conservatives after the disaster of the poll tax but it has done nothing to make local taxation fairer. Labour have kept this Conservative invention going and are merely tinkering with it rather than scrapping it.

"Liberal Democrats believe council tax is a system that is beyond repair. Instead of trying to mend a system that at heart is unfair, it is time to sweep it away.

"In its place should be a local income tax based on ability to pay. It is fair and does not require the bureaucratic and expensive benefits system that council tax needs."

The government carried out the review, led by former civil servant Sir Michael Lyons, of the way council tax works to decide what changes were needed. The review has taken over 3 years to carry out.

The Lyons Review also recommended revaluation of properties for the purposes of deciding in which council tax band a dwelling should be included. In Wales, where revaluation was carried out two years ago, a third of houses increased by at least one property band.