Abolish Council Tax, Say Lib Dems

1.50.14pm BST (GMT +0100) Mon 11th Apr 2005

Oxfordshire Liberal Democrats have written to Sir Michael Lyons, who is heading an Inquiry into reform of the Council Tax, asking that Council Tax be replaced with a Local Income Tax, which is more fair as it relates to ability to pay, or with a Land Value Tax. A land value tax is on the area of land, not on properties built on it, and allows local authorities to see an increased income if they improve an area and this affects the market value of the locality.

The Liberal Democrats have also suggested ways in which Council Tax can be made fairer, and in which the revaluation should be carried out, if Sir Michael is inclined to stick with the current, unsatisfactory method of local funding.