GOVERNMENT REFUSES TO BUDGE OVER COUNCIL TAX REFORMS
March 27, 2007 3:10 PM
The government' three year Council Tax review, led by former civil servant Sir Michael Lyons, has just been completed. His report issued last week recommends revaluing homes, but this is unlikely to ease the Council Tax burden, if anything it will result in a rise in bills. In Wales, where revaluation was carried out two years ago, a third of houses increased by at least one property band.
'The Lyon's Report has failed to address the central inequity of the Council Tax system,' says Nick Harvey. 'It is unfair and not based on one's ability to pay. Being judge by your property and not your income remains wholly unfair.'
'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 funding local council services.'
'I have mixed feelings over the Government's refusal to implement the recommendations on tax for second homes,' says Nick Harvey, 'while second home owners should not be penalised, such properties can be the bane of poorer rural communities.'
'Instead of being decisive the Government has opted to shelf the Lyons' proposals until after next election. The net result is that pensioners and poorer families will continue to struggle to pay their Council Tax bills.'
'The Liberal Democrats argue that the Council Tax should be scrapped and replaced with a system based on peoples' ability to pay, this would make any proposed property revaluations irrelevant.'
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