Fairer Local Taxation

Mike Hancock and the Lib Dems are campaigning for the national Government to reform local council taxation. They want a fairer local income tax to be introduced based on the ability to pay.

At the moment, poorer people pay a far higher proportion of their income in council tax than higher earners. So as a first step towards fairer taxation, Mike is campaigning for a £100 off a household's council tax. It would be paid for by increasing the national income tax rate for incomes over £100,000 from 40% to 50% - less than the rate under most of the Thatcher years. (This would also pay for the abolition of all university fees and for free personal care for the elderly)

Those with incomes under £100,000 would not pay a penny more in national income tax under this proposal but they would save £100 a year on their council tax

Mike Hancock said “Both Labour and Tory national Governments have treated councils badly. “It is widely accepted that they have been withdrawing grants. So there has been an increasingly heavy burden on council taxpayers. But the council tax is a flat rate tax and falls most heavily on pensioners and those on low incomes. It was introduced by the Tories after their Poll Tax fiasco"