Local Taxation — 4 Jul 2005 at 18:48

This division occurred at the end of a Conservative opposition day debate. The Conservative front bench moved a motion in the following terms:

That this House notes with concern the increasing burden of local taxation; awaits the outcome of the Lyons Inquiry but rejects the proposals for a local income tax; asserts that a local income tax would entail higher taxation on hard-working families and crippling compliance costs on local businesses and would undermine the incentive to work; believes that council tax must be reformed, with the introduction of an automatic discount for pensioners and other measures, but rejects proposals to move from a local services tax based on fixed property bands to a wealth tax; calls on the Government to reject the Mayor of London's proposals for a regional income tax in London and to cancel its plans for a council tax revaluation and higher bands in England, which would be a further stealth tax, particularly on those living on fixed incomes.

The Government front bench moved an amendment to replace the text of the motion so that it would read as follows:

That this House welcomes the Government's continuing support for local government with its 33 per cent. grant increase since 1997; notes that the average increase in council tax in 2005–06, at 4.1 per cent., is the lowest increase in a decade, the second lowest ever, and lower than the last three council tax settlements for which the previous Government was responsible; welcomes the Government's engagement with councils to facilitate the delivery of 2.5 per cent. annual efficiency gains in local government; and looks forward to the conclusions of Sir Michael Lyons's inquiry as an important contribution to securing a fair and sustainable system of local government finance for the future.

The question which was put was whether the original words should remain. Those voting Aye were therefore indicating their support for the original words, and their disagreement with the amendment. Those voting No were indicating their disagreement with the original words although not necessarily supporting the amendment.

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