The Liberal Democrats have described council tax as a "ticking time bomb" as they set out their plans to scrap the charge.

As part of the party's local government finance policy, spokesman Ed Davey said the Lib Dems would introduce a local income tax.

The review of council tax valuations begins today - which is likely to lead to big increases for many households.

However, it has emerged that under Lib Dem proposals families earning more than £40,000 would be worse off under the local income tax plan.