Council tax 'a struggle' for 2m (Ipswich Liberal Democrats)

Ipswich Liberal Democrats <info@ipswichlibdems.org.uk>

Council tax 'a struggle' for 2m

September 28, 2006 4:55 PM

Lib Dem Leader Richard Atkins is keeping Council Tax rises down but wants to see Local Income Tax introduced as a fairer system of funding local services.

The Joseph Rowntree Foundation has reported that more than two million households are struggling to keep up with council tax bills.

People on low incomes are particularly badly hit as a larger percentage of their earnings is spent on payments, with many finding it complicated to claim council tax benefits.

It said low income was often cited as the main reason for non-payment of council tax.

"Despite having a job, the struggle to pay council tax is part of the day-to-day difficulty of making ends meet for many people," the report's author Michael Orton said.

"Low income creates vulnerability to missing payments and repaying arrears."

The study said council tax comprised almost 5% of gross income for the bottom fifth of households, compared with 1.7% of income for those in the top fifth of earners.

It suggested the proportion of tax levied on each valuation band should be revised.

Cllr. Richard Atkins, leader of Ipswich Lib Dem group at Ipswich Borough says "In Ipswich the lib Dems have been keeping tax rises down for our first 2 years in office unlike up to 18% under labour. Long-term however the Lib Dems want to replace council tax with local income tax which will mean that people are taxed according to their ability to pay. This will help millions and will provide a fairer and more sustainable means of funding local services.

A government review into council tax is due to report in December.