Tuesday, March 20, 2018

Vince Cable: Council tax is no longer fit for purpose

Commenting on calls from the Resolution Foundation to radically reform the Council Tax system, leader of the Liberal Democrats Leader Vince Cable, said:

“It has long been clear that council tax is no longer fit for purpose. What was meant to be a temporary replacement for the disastrous poll tax has itself become so deeply unpopular and seen to be unfair, that it can no longer be used for increasing the revenue base of local government.

“Not only is council tax regressive in relation to income, but it is also based on property values almost three decades out of date. It is time for reform.

“The Liberal Democrats take the view that rebanding is necessary with higher bands paying relatively more and lower bands relatively less to provide some offset to the massive increase in property wealth for those especially in high value property.” 

Frank Little, secretary of the local Liberal Democrat party, commented: "Re-banding would be only a temporary and partial fix. I regret that Vince has not taken on the traditional Liberal Democrat policy of a local income tax (LIT). I have campaigned for LIT to be adopted in Wales at least ever since I became active in politics."


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