Council tax has more than doubled under Labour (Bracknell Liberal Democrats)

Bracknell Liberal Democrats <info@bracknelllibdems.org.uk>

Council tax has more than doubled under Labour

March 16, 2009 10:09 PM

John Piasecki claims (Standard, 9 March) that Liberal Democrat plans to abolish council tax would 'hit Bracknell Forest voters in their pockets' but his Party has been doing that for the past 12 years!

Council tax has more than doubled under Labour and many people now pay more in council tax than they do in national income tax. Council tax is the most unpopular, most unfair tax in Britain and it is deeply regressive. The poorest households pay 7% of their income on council tax while the richest pay a mere 2%. Council tax increases in excess of inflation hit those who are on fixed incomes the hardest.

If local income tax had been in place in 2007/8, the average rate payable on taxable income would have been 3.5p in the pound. Non-taxpayers would not have paid any council tax. Studies have shown that 70% of households nationally would have been better off or the same under these arrangements and although the figure might be lower in relatively affluent areas such as Bracknell Forest, the majority would still benefit. A typical family on average household earnings would have been about £450 a year better off.

Labour has done little, if anything, to implement its 2005 Manifesto commitment to council tax reform. John Piasecki, as the local Labour candidate, clearly feels that only a revaluation of existing property bands is necessary but Government plans to carry out such a revaluation in England have already been put on hold following the disasterous results of such an exercise in Wales, where there were more losers than winners and many properties went up at least one council tax band.

Meanwhile the Conservatives, who introduced council tax in the first place, have opposed any reforms or alternatives to council tax. They have also ruled out a revaluation of existing properties, which must indicate they are still committed to a property-based system built around the value of a home in 1991!

Neither the Labour nor Conservative positions are sustainable. Local income tax works in Europe, the USA and elsewhere and was recommended by a Royal Commission in 1976. With council tax set to continue to rise faster than inflation, the debate will have to be joined at some point.

Ray Earwicker

Lib Dem Prospective Parliamentary Candidate for Bracknell