AN influential report, which supports the proposal for a local income tax to replace council tax, has been welcomed by Liberal Democrats in West Devon.

The report, by the Chartered Institute of Public Finance Accounting (CIPFA), was commissioned by the Balance of Funding Review set up last year to address public criticism of council tax.

The findings conclude that a proposed local income tax scheme would be a viable option to replace the current system. A local income tax is the system favoured by the Liberal Democrats.

Jane Waterhouse, financial spokesperson for West Devon Borough Council?s Liberal Democrat group, said: ?I really welcome this report which endorses what we have been campaigning for.

?The situation in West Devon is particularly dire, with our high proportion of low paid and retired people.

?They deserve a fairer deal - and we will fight to achieve it.?

Liberal Democrats argue that, under the proposed system, individuals would notice a significant reduction compared with the cost of council tax.

CIPFA chief executive Steve Freer said: ?There is no doubt that local income tax is a realistic option as a strong sustainable source of funding for local services, but we should not see it as an easy option.

?It is technically complicated and challenging with much of the devil in the detail.?

The Balance of Funding Review is still in consultation over the issue, having received CIPFA?s report on March 4.