Axe the Tax
Axe the Tax- What are we fighting for?
- Local
Income Tax is the Way Forward
- Local funding review considers local income tax - and endorses the Lib Dems
Campaign!
-
Axe the Tax
Adam Symons
The question must be asked of us as politicians is 'What are we fighting
for?' What is it that puts our careers on the line, and our beliefs in the
spotlight?
Well, for me, the belief that a fairer, freer and more open society will lead
to benefits for us all, keeps me going. The idea that by highlighting
injustices, and promoting cooperation we can help everyone to lead happier and
more fulfilling lives, is one that keeps me awake sometimes at night.
More importantly, I see that very injustice in the Torridge area. Having been
born and brought up hear, I can see the way in which successive Government's
policies have succeeded only in keeping the area down. Successive changes to
taxation and the way in which local tax is raised, have been progressively
reducing the available income to Torridge residents.
I will illustrate this through the issue of Income Tax. Various Government's
have trumpeted the reduction of income tax rates, but for Torridge, which is a
very low paid area, reducing income tax rates often provides little benefits. If
you only earn £10,000 a year, a penny off income tax makes little difference.
The way to help low wage areas is to increase the level at which tax kicks in,
giving more money back to local economies with low wages.
The same is true for Council Tax. Although the level of tax is similar to
areas in places like the Midlands and South-east, the actual impacts on
households is much more severe. If you only earn £20,000 as a family per year, a
£1500 Council Tax bill is quite a chunk of your earnings!
So how to we change this? Well, we must continue to bang the table for fairer
deal from Government for our area. It has also been mentioned that we need to
encourage people to apply for benefits where they are due – this will help to
bring money into the local economy.
Perhaps most importantly, we can actively drive forward our own economy,
through lifting the aspirations of young people, encouraging people with skills
into the area, and providing education and employment opportunities for local
people. We must support the redevelopment of Bideford College, so that it
provides good practical and academic opportunities. I have a vision that
Torridge will also one day have a University here – one which champions the
strengths of our area: farming, marine biology, renewable energy, sustainable
tourism. Now that is something to aspire to!
Local Income Tax is the Way Forward
Local funding review considers local income tax - and endorses the Lib Dems
Campaign!
A report, written by CIPFA (the Chartered Institute of Public Finance
Accounting) and being considered by the Balance of Funding Review, reinforces
the Lib Dems’ proposal to replace the Council Tax with a local income tax. They
agree that:
- Council Tax could be directly replaced by Local Income Tax
- The level needed would average around 3.8 pence in the pound
- The Inland Revenue could manage the system
- The change could save around £200 million a year in collection costs
- It would lead to savings, compared to Council Tax, for many less well off
people, including those on low incomes, especially pensioners and single
parent families
Local Liberal Democrats have been leading a nation-wide campaign for the
replacement of Council Tax with fairer system, related to ‘ability to pay’, since last
October; and West Devon Borough Councillors placed a motion before the Council
to this effect. Signatures to the ‘Axe the Tax’ petition are still being
collected, and a local deputation will travel to Westminster later in the year
to meet with other deputations from around the country to present the petition.
Cllr Clarke, Liberal Democrat member of the Balance of Funding Review, said,
“We must move to a system of local taxation that asks people to pay what they
can afford to pay and no more. A local income tax would achieve that. Council
tax costs poorer people four or five times as much as a proportion of their
income as it does richer people and that cannot be right.”
“This independent report by CIPFA confirms what we have been saying, that
local income tax would bring fairness into the system of paying for local
services and also allow a huge reduction in collection costs. With the benefit
of this independent assessment, now is the time for our proposal to be taken
seriously.”
Jane Waterhouse, Financial Spokesperson for the WDBC LibDem Group, said, “I
really welcome this report, which endorses what we have been campaigning for.
The situation in West Devon is particularly dire, with our high proportion of
low paid and retired people. They deserve a fairer deal from our government -
and we will fight to achieve it!”
Notes:
The Balance of Funding Review is Chaired by Minister Nick Raynsford.
It was commissioned to address public outrage at the fact that Council Tax has become an unacceptable burden to many people, having risen by more than 70% since 1997.
The cross-party Local Government Association argued for the option of a local
income tax to be properly studied by the Review. CIPFA were therefore
commissioned by the Review to do research and write a paper.
For
more information see the Liberal Democrats
Axe the Tax website. |
