We'll scrap council tax, say Lib-Dems

Council tax would be abolished under the Liberal Democrats, the party confirmed today.

Homeowners would pay a new local income tax, saving the average family ?450 a year, the party said in a bid to regain initiative on the issue ahead of the general election.

The party had pledged to scrap the tax but suffered a serious setback when Labour announced plans to offer pensioners ?200 discounts.

The Lib-Dems say that under their plans half of people will pay less, a quarter will pay more and another quarter about the same as now; six million pensioners will pay no local tax at all. The party insists that a local income tax based on ability to pay will be fairer.

Speaking on the eve of the council tax revaluation date for homes in England and Scotland, Lib-Dem local government spokesman Edward Davey said: "Council tax is simply unfair. It hits pensioners and people on low and fixed incomes the hardest, and revaluationis going to make it worse. Council tax has already brought out the protesters, but with seven million families facing a 20 per cent or more hike in their bills, the protests are going to get worse.

"Both the other parties try to deny it, but they simply have no solutions to the ticking time-bomb of spiralling council tax bills."

Last week it was announced that council tax will rise by an average of ?47 for a typical home next year.

The tax has become a key preelection issue, with Tories offering pensioners a rebate of up to ?500.