Council Tax: If You're Poor, You Pay More

12.00.00am UTC (GMT +0000) Thu 20th Nov 2003

Following news that West Berkshire continues to be grossly under-funded under this year's local government budget settlement, David Rendel MP commented:

"West Berkshire continues to be hit by a funding system which caps the increase any Council can get - even if the Government's own formula says that we need more money!

"Once again the Council is being told to increase spending by more than the increase in grant - so services will have to be cut and Council Tax will have to go up by much more than inflation, and the Council can do nothing about it."

New figures obtained by the Liberal Democrats through Parliamentary Questions show that across England the Council Tax system favours the very rich. In the South East those at the bottom of the income scale pay 4.8% of their gross income on Council Tax. Top earners pay 1.3% and the average is 2%.

Mr Rendel added:

"It's time to scrap the Council Tax and replace it with a system of fair local taxation."

Notes:

Net council tax as % of gross income in South East Region (Source: Office of National Statistics)

Bottom 20% pay - 4.8%

2nd Bottom 20% pay - 3.3%

3rd Bottom 20% pay - 2.5%

4th Bottom 20% pay - 1.9%

Top 20% pay - 1.3%

Overall - 2.0%