Peter Lilley, MP for Hitchin and Harpenden, today warned that Liberal Democrats are planning a new local income tax for St Albans and Harpenden, which would hurt hard-working families and the elderly. The proposals were outlined following the Liberal Democrats? Alternative Budget and their national local elections manifesto.
Peter Lilley said: “Taxes on income have already been hiked up in Gordon Brown?s Budget through higher National Insurance. Now, the Liberal Democrats are planning a new local income tax for St Albans and Harpenden on top of their plans for higher national income tax.
“These plans would be bad news for the hard-working residents of St Albans and Harpenden. The average council tax across St Albans District Council is currently ?1,027. Replacing it with a local income tax would be equivalent to a tax rate of 6% on pay packets and savings income, on top of higher national taxes.
“Liberal Democrats talk about simplifying the tax system, but a local income tax would be a nightmare to administer, and could mean the creation of new St Albans District Council tax inspectors. Wealth creators would soon leave high-taxed areas, damaging local firms. Ordinary families and pensioners on fixed incomes will be hit the hardest. There is no evidence that high-taxing councils deliver better services ? Conservative councils have lower council taxes but higher satisfaction ratings among local residents.
“St Albans? residents should be aware that voting Liberal Democrat is a vote to raise the basic rate by 6 pence in the pound.?