Lib Dems Propose £100 Council Tax Cut

5.10.00pm GMT Tue 25th Feb 2003

The Liberal Democrat financial spokesman and Twickenham MP Vincent Cable today helped to launch the Lib Dems Alternative Budget in Blomberg's in the City of London.

A central piece of the proposal was an 'across the board' cut of £100 in council tax to be financed from part of the receipts

of a 50% tax rate on incomes over £100,000.

The other use of revenue for this tax would be to end student tuition and top up fees.

Vincent Cable said: "There is widespread anxiety amongst local people, particularly the elderly on small pensions, about the level of council tax, especially after the 16% increase our Conservative council is proposing. "

"My colleagues and I believe that as an emergency measure, "

"until an income based system of local tax can be introduced, there should simply be a big cut in council tax. A higher rate of tax on the very rich would not be unreasonable".

My colleagues and I also believe that a lot of government money is being wasted - examples include the bail-out of the private nuclear power company, British Energy; and certain areas of the DTI, which I shadow, and this money should be redirected to priority areas of public spending: health, education, law and order and transport".