Local Income Tax "could balance council's books"

9.59.51am GMT Mon 8th Nov 2004

The Liberal Democrat Prospective MP for the Woodspring Constituency, Councillor Mike Bell, has welcomed a recent report by CIPFA (Chartered Institute of Public Finance and Accountancy) which confirms that Local Income Tax is a practical and workable alternative way of funding local government.

Mike commented: "Liberal Democrats support local income tax because it is fairer and puts more control in the hands of local people. CIPFA now confirm that it is both workable and much more efficient than the current system of Council Tax and central government grants".

The report, 'A Taxing Issue - A Local Income Tax Exemplified', found that the introduction of a LIT could substantially reduce average Council Tax bills if used in conjunction with Council Tax, as is being considered by the Government.

The report also shows that LIT can be administered by the Inland Revenue with no extra burden on employers. That means axing council tax for Local Income Tax will produce efficiency savings of around £300 million a year that could be invested in better local services.

"Our political opponents have been trying to rubbish Local Income Tax as too complex and expensive to collect. This report, from a respected, independent professional body, demonstrates that they are wrong. Again it has been the Liberal Democrats who have led the debate by proposing a sensible and practical solution. It is time to axe the unfair and inefficient Council Tax" said Mike.

"The introduction of LIT is a chance to get fair funding for local government, fairer tax bills for local people and to balance the council's books."