LYONS REVIEW BRINGS DISAPPOINTMENT AND WORRY FOR SOUTHWARK SAYS STANTON

12.00.00am GMT Tue 20th Mar 2007

Cllr Nick Stanton, Liberal Democrat Leader of Southwark Council, has described the Lyons review of Local Government finance as bringing disappointment and worry to the people of Southwark.

"The Lyons review has been three years in the making but has brought no relief for Southwark residents from the iniquity of council tax," said Cllr Nick Stanton. "And the prospect of a revaluation of all properties will concern many who worry that their tax bills will rise. It seems clear that Gordon Brown has blocked any meaningful reform of this terrible system."

"The Lyons review has recommended that every home be revalued for council tax purposes. At present, all taxes are based on the 1991 value of the property. Whilst all values have risen, many in Southwark will fear that their house values have risen faster than average and so they would be net losers from such a revaluation."

"The proposal to introduce new bands at the top and bottom of the scale will help just a few local residents. They are just tinkering around the edges."

"I am also very disappointed that the Lyons review has failed to address the issue of business rates. These are collected by councils but their level is set by central government, to whom all money is returned. The destruction of the link between local government and local businesses is very damaging to the local economy."

"What we wanted to see was a fundamental change to the local taxation system. A system of localized income tax, which is easy to administer and collect and based strictly on ability to pay is the fairest system and is most favoured by people in the polls. I am most disappointed that the Lyons review has rejected this option."

"There will now be no realistic change in local government funding for a decade which means that our revenue raising powers will simply be unable to keep up with the increased demands on our services caused by increasing numbers of elderly people, production of ever increasing waste and the problems of a fragmenting society. A failure to find a fair funding formula will lead inevitably to cuts in service which will hit at those in most need".