Whitehall Ignores Pensioner Plight Over Britain's Most Unfair Tax

12.00.00am GMT Thu 20th May 2004

South East MEP Chris Huhne said that the council tax was a blot on the record of the Conservatives and a reproach to Labour for failing to tackle gross unfairness.

Speaking at the Hedge End, West End and Botley branch meeting of the Eastleigh Liberal Democrats, Mr Huhne said that Whitehall had ignored the plight of pensioners hit by the unfair council tax.

'Council tax across the country has risen by 70 per cent in the last eight years, but pensions have increased by only 25 per cent. The contrast between those two figures shows how unfair this tax is to those on low and fixed incomes' said Mr Huhne. 'Pensioners have to scrape together enough money each year to pay this tax and they become poorer as a result'.

Mr Huhne said that only the Liberal Democrats had made a commitment to axe the tax and replace it with a local income tax based on ability to pay. Moreover, Eastleigh Liberal Democrats had provided an earnest of good intentions by setting the lowest council tax increase in Hampshire. 'Our borough council group has not only set a below inflation council tax rise this year, but has promised to continue in the same manner for three years' said Mr Huhne.

Mr Huhne said that pensioner poverty was a serious issue in Eastleigh, where many pensioners were eligible for pensioner credit but failed to apply. However, the Government was trying to duck the issue, and the Tories were a lost cause since Michael Howard, the Tory leader, introduced the council tax as a replacement for the other failed tax that he brought in when a minister, the poll tax. 'Michael Howard is on the record as saying that the council tax is eminently fair' said Mr Huhne.