The Liberal Democrats have declared that their priorities for the next parliament include “an end to the unfair Council Tax – because the amount you pay should be based on the amount you can afford.”

Charles Kennedy said at the launch of the party’s manifesto: “We say no hidden taxes. We have only one tax raising measure which will fund three key priorities.

“In order to end student tuition fees, provide free personal care for the elderly and reduce local taxes, the one percent of people earning over £100,000 a year will pay a new top rate of tax – a marginal rate of 50p – less than equivalent people were paying under the majority of the period Mrs Thatcher was Prime Minister.

“Ninety-nine per cent of people will not pay more tax under this proposal – but the benefits will be for 100% of people …

“Our Local Income Tax, which will replace the unfair Council Tax, is a tax cutting measure. Its overall burden will be less than the overall burden of the unfair Council Tax. In every local authority in Britain, people will collectively pay less than they do today under Council Tax. A typical household will be £450 better off. And six million pensioners will pay no local tax at all.”

The Liberal Democrat manifesto is available on the party’s website.

Andrew Goodall
Editor, TaxZone