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| Council tax report urges reform | Council tax report urges reform |
| (10 minutes later) | |
| People who live in the most valuable houses in England should pay more council tax, a review of local government funding has recommended. | People who live in the most valuable houses in England should pay more council tax, a review of local government funding has recommended. |
| Sir Michael Lyons' report calls for a new top rate council tax band, along with a new bottom rate to cut bills for those in the cheapest properties. | Sir Michael Lyons' report calls for a new top rate council tax band, along with a new bottom rate to cut bills for those in the cheapest properties. |
| The savings limit for pensioners should be higher and council tax benefit be paid as an automatic rebate, it adds. | The savings limit for pensioners should be higher and council tax benefit be paid as an automatic rebate, it adds. |
| Sir Michael said: "Council tax is not 'broken' but is seen as unfair." | Sir Michael said: "Council tax is not 'broken' but is seen as unfair." |
| 'Support and understanding' | 'Support and understanding' |
| In the short term, he says the burden on pensioners should be eased by raising their savings limit to £50,000. | In the short term, he says the burden on pensioners should be eased by raising their savings limit to £50,000. |
| The review also calls for council tax benefit to be paid automatically as a rebate, so that £1.8bn in unclaimed benefit reaches the poorest. | The review also calls for council tax benefit to be paid automatically as a rebate, so that £1.8bn in unclaimed benefit reaches the poorest. |
| In the future ministers should consider ear-marking a fixed proportion of income tax to local authorities, Sir Michael said. | In the future ministers should consider ear-marking a fixed proportion of income tax to local authorities, Sir Michael said. |
| KEY SHORT-TERM RECCOMENDATIONS Automatic rebate for those entitled to council tax benefitRaise the savings limit for pensioners to £50,000New powers for councils to charge for domestic waste levy a supplementary business rate in consultation with businessEnd capping of local authoritiesImprove transparency of the tax systemProvide incentives for local authorities to promote economic growth | KEY SHORT-TERM RECCOMENDATIONS Automatic rebate for those entitled to council tax benefitRaise the savings limit for pensioners to £50,000New powers for councils to charge for domestic waste levy a supplementary business rate in consultation with businessEnd capping of local authoritiesImprove transparency of the tax systemProvide incentives for local authorities to promote economic growth |
| He said they should also consider giving councils the power to levy a local tourist tax. | He said they should also consider giving councils the power to levy a local tourist tax. |
| Sir Michael added that future governments could consider introducing local income tax or "re-localisation" of the business rate. | Sir Michael added that future governments could consider introducing local income tax or "re-localisation" of the business rate. |
| However, he said these were issues for the longer term and such reforms would need "greater public support and understanding than currently exists". | However, he said these were issues for the longer term and such reforms would need "greater public support and understanding than currently exists". |
| Earlier, he told BBC Breakfast that council tax is "workable", but said bills for the cheapest homes should be cut and those for properties worth over £2.5m raised. | Earlier, he told BBC Breakfast that council tax is "workable", but said bills for the cheapest homes should be cut and those for properties worth over £2.5m raised. |
| KEY MEDIUM-TERM RECCOMENDATIONS Revalue council taxNew bands with higher bills for those in more expensive properties and lower bills for those in the cheapestConsider reserving a fixed proportion of income tax for local governmentGive councils the power to levy a "tourist tax"Improve incentives within the grant system | KEY MEDIUM-TERM RECCOMENDATIONS Revalue council taxNew bands with higher bills for those in more expensive properties and lower bills for those in the cheapestConsider reserving a fixed proportion of income tax for local governmentGive councils the power to levy a "tourist tax"Improve incentives within the grant system |
| Public sympathy for the idea of a local income tax may not be sustained once voters realise how much it will cost them, he added. | Public sympathy for the idea of a local income tax may not be sustained once voters realise how much it will cost them, he added. |
| 'Profligate councils' | 'Profligate councils' |
| Shadow local government secretary Caroline Spelman said the report was a "tax bombshell" for families. | Shadow local government secretary Caroline Spelman said the report was a "tax bombshell" for families. |
| She said: "Nice neighbourhoods and the rising value of homes will all mean higher council tax bills. | She said: "Nice neighbourhoods and the rising value of homes will all mean higher council tax bills. |
| "Regular revaluations will turn council tax into a home improvement tax - taxing your patio, your conservatory and garden." | "Regular revaluations will turn council tax into a home improvement tax - taxing your patio, your conservatory and garden." |
| Blair Gibbs from the TaxPayers' Alliance said the review was a "missed opportunity". | |
| He added: "It gives the green light to profligate councils to spend and waste even more of our money by raising council taxes and introducing a raft of new ones. | He added: "It gives the green light to profligate councils to spend and waste even more of our money by raising council taxes and introducing a raft of new ones. |
| HAVE YOUR SAY No council tax system can ever be fair to everyone Adam, Sutton Coldfield Send us your comments | HAVE YOUR SAY No council tax system can ever be fair to everyone Adam, Sutton Coldfield Send us your comments |
| VisitBritain said it opposed the tourist tax proposal. | VisitBritain said it opposed the tourist tax proposal. |
| A spokesman said: "Accumulative taxes on tourism already make Britain the second-highest taxed country in the world for tourism." | A spokesman said: "Accumulative taxes on tourism already make Britain the second-highest taxed country in the world for tourism." |
| At the weekend Communities Secretary Ruth Kelly ruled out any revaluation of council tax bands before the next general election. | At the weekend Communities Secretary Ruth Kelly ruled out any revaluation of council tax bands before the next general election. |
| Chancellor Gordon Brown and Deputy Prime Minister John Prescott commissioned the report in 2004. | Chancellor Gordon Brown and Deputy Prime Minister John Prescott commissioned the report in 2004. |