Another 'Whopping' Council Tax Increase Predicted

12.00.00am GMT Wed 17th Sep 2003

Advance predictions of next year's Richmond council tax increase by local government experts (published in the Evening Standard yesterday) suggest that residents could be in for another shocking increase after last years record one.

The Standard publishes expert forecasts that Band D houses

could rise from £1298 to £1690 and Band H houses could pay even more relative to the lowest bands.

Vincent Cable said: "If these predictions are anything like accurate there will be a council taxpayers revolt against both the Conservative council and the Labour government".

"Property taxes are accepted as fair when they are modest but, as Mrs. Thatcher discovered, they can get to a level where they are bitterly resented particularly by those, pensioners in particular, who live in highly priced homes but have low incomes. Mrs Thatcher's answer - Poll Tax - was a cure worse than the disease but the last Conservative government's idea of 'council tax' is becoming increasingly discredited".

"I and my colleagues want to see council tax replaced by a tax based on 'ability to pay', a local income tax that works well in New York or in Denmark. But a top priority for both the council and the government will be to stop the 'whopping' forecast increases in council tax".