Local Liberal Democrat leader Chris Millington has welcomed plans unveiled today to reduce the basic rate of income tax to 16p, and scrap the council tax, benefiting millions of people on low and middle incomes. The proposals will be debated and voted on at the Liberal Democrat Conference in Brighton in September. Cllr Millington said:

"These proposals would mean lower tax bills for most households in Harlow, as well as tackling inequality and environmental damage."

Proposals in the Liberal Democrat tax policy paper, Reducing the burden: Policies for tax reform, would

• Save a typical pensioner couple nearly £1,600 a year through proposals including scrapping council tax


• Save a typical double-earning couple around £1,000 a year through measures including a 4p cut in the basic rate of income tax


• Remove tax loop-holes exploited by the super-rich


• Reform stamp duty to reduce the amount of tax paid on properties worth less than £500,000


• Reform Inheritance Tax, with the aim of raising the starting threshold to £500,000

Cllr Millington said:

"The current system of taxation is not fair. The unacceptable reality is that in Britain today the poorest pay a higher proportion of their income in tax than the super-rich. Wealth inequality has actually risen since Labour came to power.

Our new proposals will put fairness at the heart of the tax system. Low and middle income earners in this country shoulder too heavy a tax burden.

These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles."