TWO recent correspondents have written about the Liberal Democrat plan for a local income tax. In one case it was asserted that the Lib Dems only intended to penalise payers at the highest rate. In the other it was claimed that they wanted everyone to pay up but it wouldn't be much.
The authors of these letters cannot have read recent Lib Dem pamphlets; nor can they have done O level maths at school, because the reality is nothing like these bland assertions.
The key Lib Dem leaflet was published last September and made it clear that 'there will only be one percentage rate for each local authority area; the amount to be paid will depend on which area you live in; the national LIT average to replace council tax will be around 3.5%; and areas (such as West Devon) which currently have very high council taxes will have slightly higher local income tax.'
An army of bureaucrats would need a year to work out how their scheme might apply to us down here, but national figures suggest that an increase of 4.7% in the basic income tax rate would be needed to fund the existing council tax bill of £15.4 billion. This would take it from 22% to 27% and would cost the average male earner over £1,000 a year.
A West Devon householder pays just over £1,000 at present in council tax and would certainly have to pay as much in a local income tax. The problem would come for a shared home or a family of two or more income tax payers. They would be heavily penalised (at least £640 worse off) as would be anyone with savings who might well have to draw on them to meet the new exactions. The present relief for single home-occupiers would be lost and a pensioner couple, perhaps with a small nest egg, could well face yet higher bills than they do at present.
Dick Eberlie
Leader, Conservative Group
West Devon Borough Council