Local Taxes for local services- Bruce tells conference

12.00.00am UTC (GMT +0000) Tue 25th Sep 2007

Malcolm Bruce MP debates the merits of channelling greater revenues from income tax and National Insurance directly at a more devolved, local level. Malcolm was speaking at the Liberal Democrat conference in Brighton

More revenues from income tax and National Insurance which are paid locally should be retained locally to fund local councils and health authorities, Gordon MP Malcolm Bruce told the Liberal Democrat conference in Brighton.

Mr Bruce said:

"It is absurd that all our taxes go to the Treasury in London where they are top sliced and laundered leaving our vital local services chronically under-funded.

"Local income tax is fairer than the council tax but simply replacing the one with the other will not change the fact that our councils and health boards are dependent on Government grants for most of their income."

Mr Bruce, who was the Liberal Democrats Treasury spokesman for five years went on, "I have long argued that the devolution settlement requires an allocation of some of the taxes raised in Scotland to the Scottish Parliament, but it should not stop there. Our local councils and health boards should secure more of their funds locally and central government should take less.

"When all the taxes are totted up to the telephone numbers handled by the Treasury it is easy to lose billions of pounds. Political devolution needs to be reinforced by fiscal devolution. Local services need to be funded by local taxes.

"Liberal Democrats do not want more taxation. We want simpler, greener and fairer taxation. It is time to cut the Treasury down to size and redirect local taxes for local services."

ENDS