Scrap Council Tax

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

18 December 2005

FOR IMMEDIATE RELEASE

[start of press release]

COUNCIL TAX CAMPAIGNERS SAY LYONS INQUIRY IS A SHAM

Christine Melsom, founder of the Isitfair council tax protest group, issued the following statement in response to the publication of the Consultation Paper and Interim Report of the Lyons Inquiry into Local Government, 15 December 2005.

"Under its terms of reference the Lyons Inquiry into Local Government, set up in July 2004, was to 'make recommendations on how best to reform council tax'. The inquiry's interim report was published on 15 December 2005, and gives Isitfair campaigners no confidence that its final report due in 2007 will be worth waiting for.

"For the past three years the Isitfair campaign has been arguing for council tax to be scrapped. The present system based on property value results in a disproportionately high tax on those least able to afford it, and it should be replaced by a tax based on everyone's ability to pay.

"We expected the Lyons Inquiry to include a full and unbiased evaluation of income-related alternatives to the present system of council tax, which include our own proposal for an Income Tax/VAT solution and also local income tax as proposed by others. We now know that it will do no such thing. The interim report of the inquiry makes many references to the unfairness of the present system, but then states that it will not even consider an income-related replacement for council tax.

"This position is made clear in the report where Sir Michael Lyons states that his terms of reference 'asked me only to look at local income tax as an additional local tax, rather than as a replacement for council tax' (page 73) and then proceeds to say that 'people were dubious about the idea of having an additional tax alongside council tax to fund local spending' (page 73). He must be on a different planet if he finds this surprising - people want an income-related tax INSTEAD OF the present property tax, not in addition to it.

"There are numerous references in the report to the unfairness of the present tax, for example in the section 'Key findings from public attitudes' (page 137) it says 'Fairness was considered by focus groups to be the most important principle underlying a tax system, and most equated fairness with ability to pay. To most people this meant income and, to a lesser extent, savings. Property, especially a home, was not considered to form a component of ability to pay, as it was not seen as a source of wealth that was immediately accessible.'

"Isitfair maintains that an income-related tax would be far cheaper to administer, simpler to understand and, above all else, fairer to everyone. Why have such alternatives been rejected without any investigation whatsoever?

"The inquiry's blinkered approach leads them to the conclusion that extending the council tax benefits system will address the unfairness in the present system. The means-tested CTB system has been a failure but they appear determined to keep flogging this dead horse. If the tax was related to income instead of property value the whole council tax benefits system would be redundant, saving tens of millions of pounds every year in administration costs alone.

"We can therefore expect their conclusions in 2007 to centre on patching up the present system with more means testing. They even refer to the possibility of other taxes in addition to council tax, but make no reference to the considerable cost of the associated bureaucracy that would be required to implement and administer them.

"The people at the sharp end of this tax have had enough, and will continue to fight for it to be scrapped and replaced by a system that takes account of everyone's ability to pay.

"We are heading for yet another round of delaying tactics and Government impotence. If Sir Michael Lyons continues along the lines set out in his interim report then this long-awaited inquiry will be nothing more than a sham as far as its council tax reform proposals are concerned."

[end of press release]

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

Lyons Inquiry - 20 July 2004 terms of reference: http://www.lyonsinquiry.org.uk/lyons_original_terms_of%20_reference.htm

Lyons Inquiry Interim Report, December 2005: http://www.lyonsinquiry.org.uk/Lyons%20Inquiry%20web.pdf

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