Council tax report backs up Alliance solution to rates crisis

10.47.25am BST (GMT +0100) Thu 28th Sep 2006

Alliance Party Finance Spokesperson, Alan Lawther

Alliance Party Finance Spokesperson, Alan Lawther, stated a report on council tax problems in England backs up the Alliance solution to the rates crisis. The survey published today by the Joseph Rowntree Foundation showed that over 2 million people struggle to pay council tax in England. Alliance has proposed to scrap unjust rates hikes and introduce a fair local income tax system.

Alan Lawther said: The report's findings back up Alliance's solution to the rates crisis. The report stated that any system must address the inability of large numbers of people on low incomes to pay for council tax. It suggests the use of a system which does not penalise people on low incomes. Our solution to the rates problem will be fairer for those on low incomes, as it is based on people's ability to pay.

"Alliance has proposed a local income tax consistently for decades. A local income tax is directly related to the ability of a household to pay and is progressive and fairer. Council tax is criticised as regressive in this report and it takes a greater proportion of incomes from low and middle earners.

"Lets learn from England and lets not imposing a property tax with all the same problems that are seen there. A local income tax is a viable and real solution. In light of this report how can the Secretary of State, Peter Hain, claim that the proposals for N.Ireland are fair?"

ENDS