Forum Brief: Council tax

Local government minister Nick Raynsford has launched a new inquiry into the future of town hall funding.

The ministerial-led committee of experts will examine proposals including reform of the council tax, local income tax and business rate revenue.

The move comes amid record rises in council tax bills in many parts of the country.

Lib Dem spokesman Edward Davey said: "Council tax is unfair to millions of pensioners and people on low incomes and should be scrapped.

"But the danger of the minister's position is that it could lead to Labour adding local income tax on top of council tax."

Forum Response: Local Government Association

Brian Briscoe, chief executive of the LGA, said: "I think we need more than one source of tax. We are too dependent on a single source.

"I don't think we would ever say there should not be a property tax. But the property tax on its own is bearing too much of a weight."

Forum Response: Local Government Information Unit

Kevin Morton, spokesman for the Local Government Information Unit, told ePolitix.com: "The current council tax is highly regressive.We want its replacement to be linked with incomes.

"The council tax gives too much emphasis to notional assets such as property values and is extremely unfair to those on modest incomes, perhaps just above benefit entitlement levels, who find that they live in homes that have gone up massively in value.

"Adding a few extra bands around the next revaluation will not do.

"Reform of the council would also pave the way for local government to raise more than half of its income locally through a broader funding base. This is the outcome that we want from the government's balance of funding review.

"More local control over finance would help address historic problems of underfunding, prepare local government for new responsibilities in areas such as children's services, diminish the need for central government capping and strengthen local democratic engagement.

"We want councils more accountable to local electors than to Whitehall."