Council says Axe the Tax

12.00.00am GMT Fri 28th Nov 2003

A meeting of the full council at Eastleigh Borough passed a motion calling on the Government to scrap the unfair and greatly disliked Council Tax and called for it to be replaced with the fairer Local Income Tax.

After much debate by all sections of the council the following motion submitted by Liberal Democrat Councillor Steve Sollitt was passed :-

"This Council :-

(a) Recognises that the Government's Council Tax is unfair especially to residents with low incomes, such as pensioners; in particular, the poorest 20% of people now pay nearly 6 times more than the richest 20%, as a proportion of their income; and

(b) Notes that the present method of funding local government services does not give adequate levels of grant to local authorities; the present system also exaggerates the impact of grant shortfall on council tax payers who have to make up the difference. A 1% shortfall in Government grant requires, on average, a 4% increase in Council Tax or equivalent cuts in services.

The Council therefore calls on the Government:

1) To scrap Council Tax as soon as possible and replace it with a fair tax related to ability to pay; and

2) To change the balance of funding so that shortfall in central Government grant does not result in disproportionate rises in local Council Tax."

To see how this proposal would effect you visit the Axe the Tax website and try out the simple Local Income Tax Calculator.

This excellent motion to improve the taxation system to make it fair and just was only passed thanks to all the Liberal Democrat councillors present.

For the motion were Liberal Democrat Councillors :

David Airey, Louise Bloom, Carol Boulton, Alan Broadhurst, Tonia Craig, Glynn Davies-Dear, Cathie Fraser, George Fraser, David Goodall, Keith House, June Hughes, Peter Humphreys, Rupert Kyrle, Trevor Mignot, Angela Roling, Roger Smith, Maureen Sollitt, Steve Sollitt, Phil Spearey, Eleanor Unsted, Peter Wall, Jane Welsh, Anne Winstanley & George Wintle

All the Conservative and Labour Councillors present either voted against or abstained they were:

Colin Davidovitz, Steve Broomfield, John Caldwell, Jerry Hall, Michael Hughes, Pete Luffman, Godfrey Olson, Bill Pepper, Ernie Pullen, Sue Toher, Doreen Wellfare & Bernie Wright

During the debate the conservative Group and tried to amend the motion to read :-

"This Council further, recognises that the funding of Local Government services based on a system of property taxation provides stability in the financing of local government expenditure but that funding changes are needed to deliver services to local people and calls on the Government to recognise this by:

1) Introducing improvements to the Council Tax benefit system to give better protection to pensioners and those on low incomes by raising thresholds.

2) Make changes to Council Tax by revising top and bottom valuation bands and by increasing the number of bands to increase flexibility.

3) Allow local control of Business Rates.

4) Make not further "resource equalisation" adjustments to Local Government budgets. "Resource equalisation" (the transfer of funds from South to North) is calculated to cost Local Tax Payers £8 million this year.

5) Calling on the Government to fully fund the services managed by the Council on its behalf."

In response to this Liberal Democrat Councillor David Goodall pointed out that :-

"None of these changes would get round the basic unfairness of the tax, for example

• a single person earning £50,000 a year living next to a couple just above the tax benefit threshold, with an identical house, would pay less despite earning more.

• or if a household's income reduces, for example through retirement or unemployment the council level still remains the same.

• and council tax benefit is not the answer it is a expense system to administer which does not actually reach all those in need of it because the process of claiming it puts the very same people off."

Finally it should be noted that Liberal Democrats also wish to create a fairer local business tax system by giving local authorities control over their local business rates, and allowing them to put rates on a Site Value Rating basis. For more information on this visit the national Liberal Democrat website and look under the policy section.

Related Link:

David says Axe the Tax.