LOCAL INCOME TAX IS A SIMPLISTIC ILLUSION - Letter (08/04/05)

Mrs Bakewell's letter* mentions that the public are tired of being deceived by politicians - indeed they are. The Lib Dems "Local Income Tax" headline is particularly deceitful. A party that was interested in being honest would not hold an "Axe the Tax" placard in one hand whilst hiding over 40 new taxes they propose behind their back.

"Axe the Tax" sounds like getting rid of tax to me, not replacing one tax with another whilst raising over 40 new types of tax.

Furthermore, it is too simplistic to argue that Local Income Tax is "fair" and Council Tax is not. Both systems have winners and losers. The average income tax payer works for 5 months of the year purely to pay taxes. Many families have mortgage or rent payments to keep up with, probably children to feed and clothe, should they be asked to pay more because they work hard?

A person's wealth is rightly measured by more than just their wage packet, hence a truly "fair" tax system will have a basket of taxes - including a property tax. A property tax is the basis of the Council Tax and, apart from Sweden, every European country has a form of local property tax.

As Mrs Bakewell well knows, all three major parties are involved in a continuing review of how best to fund local government. There is certainly room for improvement. I am interested in a truly fair solution, not the simplistic illusion offered by her party, which is no more than a smokescreen to hide their own financial incompetence.

As the Independent newspaper has said (16 January 2004), 'The council tax may be unpopular, but the alternatives are worse’. It dismissed Local Income Tax as an idea with "superficial appeal". Like the Liberal Democrats then!

Robert Little

Conservative Finance Spokesman, Somerset County Council

Western Daily Press, 4 April 2005