Charles Kennedy: Local Income Tax will be good for Brighton and Hove

9.17.28am GMT Mon 1st Mar 2004

In a special article for Brighton & Hove residents, Lib Dem Leader Charles Kennedy says a Local Income Tax, based on the ability to pay, would be much fairer than the Council Tax.

On Thursday Brighton & Hove Council set its Council Tax with a rise of 7.7%. The inescapable fact for Brighton & Hove residents, is that while local taxes are increasing, improvements in services have not been forthcoming.

The blame for this lies at the doorstep of both the local council and way that central government funds the regions. This is why Liberal Democrats are stepping up our commitment to local politics by reaffirming our belief in a local income tax.

There can be no escaping the fact that the Brighton's local council has let local people down. Last year's increase of 14.9% - when Labour ran the council - was seen by many as unacceptable. This year Labour has lost its majority on the council and the Lib Dems have played a crucial role in negotiating a much lower level of council tax for 2004/5. But the fact is that people here in Brighton & Hove want a tax that is fair and delivers a decent level of services. I don't think this is too much to ask. The council tax will never be able to achieve this.

The local council has failed in a number of areas. When Labour ran the council there was huge overspending on waste refuse services. This has come back to haunt local residents and now, many people in the city centre are being made to trial communal bins in an attempt to save their misspent money. Another bone of contention is the relocation of Hove Library. The proposal to move it to Hove Town Hall as part of a cost cutting exercise has been strongly opposed by local Liberal Democrats, and 2000 residents have signed a petition to oppose the move.

But the fact is that all local councils up and down the country are being financially constrained by central government. This is forcing local government to operate with one hand tied behind its back. Gordon Brown has made the problem much worse by shifting large expenses from central to local government, and insisting that somehow local councils come up with the extra money. That way he can say that income taxes aren't going up. It's not very open. In fact it's very underhand.

These huge council tax bills are stealth taxes that penalise those on low incomes, particularly pensioners. The council tax has had its day. People in Brighton & Hove want a council that is run for them by them - not mismanaged and interfered with by central government. So the Liberal Democrats are stepping up our campaign for a local income tax. This is a fair solution to a profoundly unfair tax.

It would be directly related to the ability to pay and not based on property values. Under our proposals, if you are on a low income, you would pay less than your council tax - and in some cases a lot less. Overall, a local income tax would mean that 70% of people would be gainers, either paying less in local income tax than their council tax or largely unaffected. When we passed the motion for a local income tax at our conference, here in Brighton last year, it was met with widespread support.

The local income tax would be much more efficient because it would be far easier to collect. Instead of the current costly bureaucracy of council tax, we propose to collect it through the national tax system. In a little over three years, I believe that this system would generate over £1 billion which is currently wasted on administrative costs.

The Liberal Democrats have always been a party devoted to the idea of giving local people control over their circumstances. The local income tax would help to bridge the gap between politicians and voters. Increasingly, fewer people are turning out to vote at elections because many feel disillusioned with politics and disconnected from what happens in Westminster. By giving more powers and responsibilities to local government these decisions would be brought closer to our communities, so we could see the direct impact of decisions which are made. It's transparent, it's democratic and its devolved politics in action.

It's up to people to decide whether they think the council tax is fair or not. But consider this: neither of the other two parties seem to have grasped how much damage the council tax is doing. The Liberal Democrats are the only party pledged to scrap the council tax.

Whether you are a Liberal Democrat supporter or not, I would urge you to look hard at our proposals. I know the Liberal Democrats in Brighton & Hove have been campaigning to ease the impact of this hated tax. Our message here and throughout the country is that the council tax has to go. There is another way - let's scrap this unfair tax and find a better system.

For more information on our council tax proposals see our website at www.axethetax.org.uk