Scrap Council Tax

PRESS RELEASE ISSUED BY THE ISITFAIR CAMPAIGN FOR THE REFORM OF COUNCIL TAX
For further press information, please contact: Christine Melsom on 01428-712680 or E-mail c@isitfair.co.uk

24 April 2005

FOR IMMEDIATE RELEASE

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ISITFAIR COUNCIL TAX PROTEST GROUP COMMENTS ON GENERAL ELECTION CAMPAIGN

Christine Melsom, founder of the IsItFair Council Tax protest group issued the following statement in response to the election campaigning by the main political parties.

"First of all, I would like to emphasise that IsItFair is a non-party political campaign. We have no allegiance to any political party.

"The IsItFair Campaign wants Council Tax scrapped and replaced by a fairer system that takes account of everyone's ability to pay. It is not only an issue for pensioners, it's about getting a fairer system for everyone. The first essential step is to stop using property value as the basis for the tax.

"The Labour and Conservative parties have stated that they will retain Council Tax based on property values. We believe that both main parties are out of touch with public opinion on this issue. However, we do welcome the commitment of the Conservative and Liberal Democrat parties to stop the revaluation and rebanding of properties in England.

"Liberal Democrat policy on Council Tax is a step in the right direction, but we would prefer an honest increase in national taxation (i.e. Income Tax) to fund Education, Social Services and the Emergency Services. Everyone would then contribute according to their means, as they already do to the Health Service.

"IsItFair's own proposal is to replace Council Tax with small increases in the existing taxes on income and spending, i.e. Income Tax and VAT.

"Irrespective of party politics, the obvious question has been the comparison of how much people would pay under Local Income Tax if Council Tax was scrapped. There is a great deal of confusion about Local Income Tax versus Council Tax and there have been conflicting statements from the different party politicians. Pensioner households with low to middle incomes would be better off with LIT even after taking into account the 50% discount planned by the Conservatives.

"The calculation of Local Income tax is straightforward, but then to calculate the extent to which a household would be better or worse off depends on how much they pay at present in Council Tax. Comparisons referring to the 'typical family' or the 'average household' without also specifying their level of income and their existing property band are causing a lot of confusion.

"As with any proposed change to a system of taxation there would be winners and losers. But it is important to make the data available so that people have a clear understanding of the extent to which they would be better or worse off in their specific circumstances."

A pensioner with a gross income of £10,000 living alone in a Band E property would be £1,004 a year better off with Local Income Tax. A similar Band E property occupied by a working couple with a joint gross income of £40,000 would also be better off by £351.

A pensioner couple with a joint gross income of £20,000 in a Band B property would be £726 a year better off. A similar Band B property occupied by a working couple with a joint gross income of £40,000 would be worse off by £189.

These are just two examples. The IsItFair website gives access to Council Tax versus Local Income Tax comparisons for different types of household, with incomes ranging from £5,000 to £100,000 and living in any one of the existing property bands A to H.

"Politicians should be giving us less spin and more facts. IsItFair encourages people to look at the comparative data for their particular circumstances and provides them with access to this information. Only then can they understand how such changes would affect them.

"It is indisputable that under the present system, the less income you have, the higher the percentage of your income you have to pay in Council Tax. This has got to change, and the only way to change it is to scrap Council Tax!"

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For further press information, please contact: Christine Melsom on 01428-712680 or E-mail c@isitfair.co.uk

Issued by IsItFair Campaign, Headley, Hampshire GU35 8PJ

NOTES TO EDITOR

Please refer to the document www.isitfair.co.uk/downloads/IIFHowMuchLIT.doc for IsItFair's summary of Local Income Tax versus Council Tax comparisons.

IsItFair is a UK-wide, non party-political campaign for the abolition of the existing property-value based system of Council Tax, and for its replacement by a fairer system based on individual ability to pay.

The campaign represents people of all age groups (not only pensioners) who are unfairly affected by Council Tax.

IsItFair is endorsed by The Royal British Legion.

You can find more information about the IsItFair campaign at www.isitfair.co.uk