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Town halls told: Lower bills

Nicholas Cecil, Chief Political Correspondent
15 Sep 2008


Town halls in London run by Lib-Dems who charge sky-high council tax must cut bills, party president Simon Hughes said today.

Kingston-upon-Thames, which charges £1,580 for band D homes, and Richmond, where band D is £1,544, should reduce bills, Mr Hughes said.

Council tax levels are a big political issue in these areas. "Our colleagues there are very conscious of that," said Mr Hughes. "They will be doing all they can to hold council tax or bring it down in the next two years." He insisted that these councils have been underfunded historically but also highlighted how Southwark town hall had managed to hold the level of council tax for six years.

The Lib-Dems propose replacing council tax with a local income tax of about 3.5p in the pound, which could see many Londoners facing higher bills. But the party faces a tough battle to hold on to five seats in south-west London in the face of a Tory surge.

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The article is misleading in respect that the local income tax would come in after a 4p in the pound cut in the basic rate of income tax.

The net effect of the tax change would then be scrapping Council tax entirely and a 0.5p cut in income tax. In that regard Londoners would clearly be better not worse off.

- Andy Mayer, Bermondsey, London, 16/09/2008 08:42
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