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Council tax
The Conservatives have detailed their plan to cut council tax bills for the elderly.
Party leader Michael Howard promised to take action to help pensioners with their payments.
The move came as figures for this year's council tax rises are finalised, with Labour boasting that tax hikes in its councils are lower than those in Tory-controlled town halls.
Party Response: Conservative
Michael Howard said: "People will face a clear choice at the election: Conservatives who will give pensioners dignity, security, and respect by increasing the state pension and cutting their council tax or Mr Blair, who will forget them and raise their council tax.
"Under Labour the council tax, the most painful of all Mr Blair's stealth taxes, will hit £2,000 for a typical family. It will be particularly hard for the older generation, people who live on fixed incomes.
"Many of them served our country at her greatest hour of need, preserving liberty, freedom and Britain's independence for future generations. Those who have given so much must surely be given their due.
"The next Conservative government will take action to relieve the council tax burden for millions of pensioners. I will give every home where the adults are sixty five and over a fifty per cent council tax discount up to a maximum of £500. This will ensure that five million pensioners have their council tax bills cut."
Party Response: Liberal Democrats
Edward Davey, Liberal Democrat ODPM spokesman, said: "Michael Howard has finally realised that the tax that he and his party introduced is an unfair burden. But he wouldn't scrap it.
"The Liberal Democrat proposals to scrap council tax will save the average pensioner far more than the Tory plans, with more than half of pensioners paying no local income tax at all.
"The Tories have once again failed to target the most vulnerable. After revaluation, many pensioners would still struggle to pay, even with the Tory discount.
"Pensioners should be wary that this is a promise based on uncosted figures and a cheque from the Conservatives is going to bounce.
"Scrapping council tax is the only way to make local tax fair and get the most help to vulnerable pensioners."
Stakeholder Response: Help the Aged
Mervyn Kohler, head of public affairs at Help the Aged, said: "Council Tax is an issue that has provoked real anger among older people on fixed incomes over the last few years, and it will be high on older people's agendas come the election.
"The Conservatives' announcement will please older people who feel that they have been unfairly penalised by large rises in council tax over the last few years, particularly those who fall outside the limits for claiming Council Tax Benefit.
"This rebate would also be particularly helpful for the forty per cent or so of older people who are eligible for council tax benefit, but do not claim it. However, this move would not make the council tax itself any fairer, which is why we are still calling for root-and-branch reform."
Stakeholder Response: Age Concern
Gordon Lishman director general of Age Concern England, said: "All the parties need to take older voters seriously. People over the age of 55 are twice as likely to vote as those under 55 and the parties need to convince this powerful group that they would deliver for them if elected.
"Although two thirds of older voters say that they are certain to vote, many are increasingly undecided at who to vote for. The key issues that would win over older voters are a decent income in retirement, a commitment to improve the NHS, and access to good public services.
"The Conservatives have addressed an issue which is very important to many older people, and they are likely to welcome these pledges. Every party and every prospective candidate must start listening to and wooing this group, or they risk being punished at the ballot box."
Stakeholder Response: Local Government Information Unit
Dennis Reed, chief executive of the Local Government Information Unit, said: "It is unwise for anyone to give the impression that only pensioners suffer from the unfairness of the present council tax regime.
"Many low-income families of working age have also suffered from the excessive burden that has built up on the council tax in recent years and from the regressive nature of the tax at the top and bottom of the banding system. Many of them live in houses that have risen in value way ahead of their incomes. Without other changes being made to the council tax system, they also fear the consequences of this year's revaluation of council tax bands and the prospect of being put into a higher band from 2007.
"This is why the LGIU has been calling for an early commitment from ministers to reforms that will make the council tax banding system and council tax benefit fairer. Local government must also be given a wider range of revenue sources, including a relocalised business rate, so that more than half of council revenue would be raised locally with less strain on the domestic sector. Such reform could be fleshed out in greater detail later this year after the Sir Michael Lyon review has reported.
"This would actually solve the council tax crisis in a more efficient and sustained way than one-off increases in Whitehall subsidy to councils, threats of capping or special discounts for pensioners."
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Published:
Mon, 21 Feb 2005 15:25:13 GMT+00
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