Scrap council tax council tells government inquiry

12.00.00am GMT Tue 7th Mar 2006

North Somerset Council's ruling Liberal Democrat Executive has this morning sent a clear message to the Government: Council Tax must go.

Senior Councillors met to agree a submission to the Government's 'Lyons Inquiry', which was set up last year to consider local government finance and possible changes to the council tax system.

The Lib Dem Executive noted and endorsed recommendations including:

• With Council Tax rises averaging up to 5% a year, affordability is a key issue for the higher-than-average proportion of elderly people in North Somerset whose incomes are rising at a lesser rate than those of employed people

• There are a significant number of people in North Somerset who are capital-rich (as home owners) but income-poor (through retirement) for whom Council Tax benefit does not provide assistance

• The basis for valuation of Council Tax bands is now 15 years old and bears no resemblance to current property values.

Councillor Mike Bell, Liberal Democrat Executive Member for Finance and Performance, said: "Local people protest about council tax partly because it has risen above inflation, but mostly because it is fundamentally unfair. It does not relate to ability to pay.

"The people at the sharp end of this tax have had enough, and will continue to fight for it to be scrapped and replaced by a system that takes account of everyone's ability to pay.

"Liberal Democrat Councillors remain determined to keeping costs and council tax rises down. But more importantly, we will fight to get Council Tax scrapped altogether and replaced with a genuinely fair system."