The long-awaited report by Sir Michael Lyons on council tax has failed to tackle the reasons why the current system is so unfair, say local Liberal Democrats.

The 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. It also says that the savings limit for pensioners should be higher, and council tax benefit should be paid as an automatic rebate. And it proposes new powers for councils to charge for domestic waste and levy a supplementary business rate in consultation with business. Harlow's Liberal Democrat leader Cllr Chris Millington says:

"These are timid recommendations that nibble at the edges of the council tax, rather than attacking the unfairness at the heart of it. Council tax is an unfair tax, invented by the Tories and continued by Labour. It should be scrapped, and replaced with a locally set income tax, which charges people based on their ability to pay."

A recent NOP poll for the BBC found that 60% of people are in favour of replacing the current council tax with a local income tax.