Lib Dems' local Income Tax would cost Tottenham residents an extra £600 per year 18/01/04

You'd be £600 worse off under the Lib Dems

Peter Forrest, Conservative GLA Candidate for Enfield-Haringey, warned today that Liberal Democrats’ proposals for a new local income tax, published this week, would mean an average household in Enfield-Haringey paying more than £600 extra a year in tax. A local income tax has also been suggested by the Labour leader of the Local Government Association, in its response to the Government’s review of local government funding.

The plans for a new local income tax to replace council tax were announced by Liberal Democrats on 12 January, yet analysis by Conservatives has exposed the fact that the average household would pay more under the system.

Currently, households in Enfield-Haringey pay an average council tax bill of just over £1,000 a year. To raise the same amount of money would require a local income tax rate of 4¼%. Yet a household with one person on average male earnings and one on average female earnings would end up paying a yearly local income tax bill of more than £1,600 – which even after getting rid of council tax, would still entail an extra £600+ a year in tax.

Peter Forrest explained:

"We already know that taxes on income have been hiked up by Labour, supported by the Liberal Democrats, through higher National Insurance. Now, LibDems want to increase tax bills even more – first by introducing a national top rate of income tax of 50 per cent and also a local income tax of more than four pence in every pound. This could mean more than £600 extra a year in tax for a typical two earner household in (area).

Local income tax has the disadvantages of the old poll tax – families and shared houses with more than one earner would see their tax bills soar. Pensioners would not escape either – their savings income would be taxed to the hilt by Inland Revenue too.

Rather than robbing Peter to pay Paul, the Government needs to end the fiddled system of local funding imposed by Whitehall, and give back the money it has snatched from Enfield and Haringey Councils. We need a fairer deal not ever higher taxes.”

ENDS.