The Liberal Democrats want to replace the Council Tax with a local tax based on income, reinstating the principle of progressive taxation, that the more an individual earns the more they pay.

Cllr Ian Smith, Leader of the Lib Dems in Knowsley, said: "Council Tax is the most unfair and unpopular tax in Britain today. It’s unpopularity stems from its basic design fault, its unfairness.

"We want to see it replaced with a system that is fair to all and based on an individual's ability to pay.  Replacing the council tax with a local income tax would mean 70% of households would be better off or unaffected and the tax system would be much fairer."

Under the Lib Dem proposals the average single earner household living in a band D house would be £356 better off, while a pensioner on a modest income would find themselves over a £1000 better off.

Cllr Dave Smithson, Deputy Leader of the Lib Dems, said: "Yet again the Labour party in Knowsley have demonstrated that they are out of touch with local people's views and they are not prepared to support any constructive ideas to introduce a fairer method of taxation for their residents!"
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