Lib Dems pledge to scrap council tax

The Liberal Democrats today launched their campaign to scrap the council tax in favour of a local income tax.

The Lib Dem policy has been flagged up for more than a year, but the announcement comes amid renewed protests from pensioners against rising council tax bills.

Under a local income tax 6 million pensioners would not have to pay anything.

The pledge comes on the 15th anniversary of the poll tax riots and the day before the revaluation date for homes in England and Scotland for future council tax bills.

It also comes on the day that an octogenarian faces the threat of jail for refusing to pay her council tax in full in protest at an ever-increasing bill while on a fixed pensioner's income.

The Liberal Democrats will make this politically charged issue a cornerstone of its general election and local government campaigns, despite party opposition claims that a local income tax would prove even more unpopular, and unaffordable.

The Liberal Democrats are the only party who have promised to scrap, rather than revamp, the council tax, and say a local income tax to fund local services would be fairer. Independent experts say half of people will pay less under the plans, a quarter will pay more and another quarter will pay about the same as now.

Lib Dem shadow local government spokesman, Ed Davey, said a switch to a local income tax would see more winners than losers, with a typical family seeing their tax bill cut by ?450 a year.

Mr Davey, said: "Council tax is simply unfair. It hits pensioners and people on low and fixed incomes the hardest, and revaluation is going to make it worse.

"Fifteen years ago, the unfairness of the poll tax led to rioting in the streets. Council tax has already brought out the protesters, but with 7 million families facing a 20% or more hike in their bills, the protests are going to get worse."

Tomorrow's reevaluation will revise the 1991 property prices on which council tax bands are based to determine people's bills up and down the country.

Last week, it was announced that council tax will rise by an average of ?47 on a typical home next year. The bill for two adults living in a Band D property will increase by 4.1% from ?1,167 to ?1,214 in 2005-6.

The tax has become a key pre-election issue - with the Tories offering pensioners a rebate of up to ?500 and the chancellor, Gordon Brown, responding in his budget with a one-off ?200 payment for pensioners to help with bills.

Many pensioners are now involved in the anti-council tax campaign, IsitFair?, after repeated increases.

The scales tipped in 2003, when council tax soared and areas such as Devon saw an 18.5% rise.

Many pensioners have since refused to pay increases that exceed inflation, resulting in court appearances for several campaigners.

The oldest is 84-year-old Elizabeth Winkfield, who has become a symbol of the revolt by repeatedly refusing to pay her bill in full for the past two years.

The Devon pensioner is due for her latest appearance in court after refusing to pay, and could face jail for non-payment.