Pensioners hit hardest by Council Tax increases
Pensioners face a staggering 25% rise in council tax bills this year thanks to the Labour government.
Chancellor Gordon Brown has cancelled a £200 rebate for pensioner households - issued last year as a pre-election bribe. Pensioners' bills will hit record highs this year as a result - with average bills over £1250. That's a rise of more than £250. But pensions will only rise about 3% this year, with that money easily swallowed up by rocketing tax bills.
Liberal Democrats will continue our fight to get pensioners a fair deal on local taxes. It's time to scrap Council Tax and replace it with a fair tax based on ability to pay.
A Local Income Tax wouldn't need complicated benefits and rebates. It would be automatically affordable for people on low or fixed incomes. The unfair Council Tax was invented by the Conservatives, but it's soared under Labour. Bills are nearly £600 higher than in 1997. And government watchdog the Audit Commission has described the tax as "fundamentally flawed".
Neither of the other parties have any ideas for fixing the Council Tax crisis. Only the Liberal
Democrats are committed to axing this unfair tax once and for all.