“Lib Dems plan 4p cut in tax rate” reads the headline … and that is what the FibDems would want us to believe. Except they are actually planning a minimum 1p increase, at least in parts of London.
That is, the 4p “cut” in the basic rate, which is then more than wiped out by the increases imposed by their Local Income Tax (LIT) plans. Using the ALG/CIPFA figures here (page 34) (pdf) we see that in Bromley, Local Income Tax would impose a rate of over 11p. In Ealing (to pick another borough completely at random) the figure is 16p. These figures assume that all local council funding would be raised by LIT, which is a situation that the LibDems have committed themselves to in the past.
A 12p increase in tax rates? That wouldn’t look so good on an Ealing Southall Focus would it?
But let’s be generous to the Fibs – assume that only 25% of local funding comes from the LIT (a similar proportion to Council Tax). We are still left with a 4p rise in Bromley, 4.5p in Ealing, and up to 5p in LibDem controlled Richmond: a net increase in the basic rate of 1p.
So are the LibDems not telling the whole truth or can they just not do maths?
14th September, 2008 at 11:07 am |
[...] I have pointed out before, with my “cabinet member for resources” Bromley hat on, in my borough LIT would equate to [...]