We need your support to keep TheyWorkForYou running and make sure people across the UK can continue to hold their elected representatives to account.

Donate to our crowdfunder

Local Taxation

Part of the debate – in the House of Commons at 4:24 pm on 4th July 2005.

Alert me about debates like this

Photo of Sarah Teather Sarah Teather Shadow Minister (Office of the Deputy Prime Minister) 4:24 pm, 4th July 2005

The figures in the Conservative leaflets in Cheadle claim that people would supposedly pay much more in local income tax, but I must point out that that is only possible on an income of more than £80,000. So that is a ridiculous claim.

The average household income is only about £23,000 a year, so figures given by the Conservative spokesmen completely misunderstand the earnings of ordinary families. Under a local income tax, about half the population would be better off, a quarter would be about the same, and a quarter would pay more. We have been upfront about that, and the hon. Member for Meriden, the Minister and I would all pay more. That is perfectly fair. Pensioners in Cheadle, however, would do extremely well. Only 4 per cent. of pensioners nationally would pay more. Many pensioners would do considerably better than they do at the moment, and about 6 million of them would not pay anything at all.