Not Enough Sugar To Make The Pill Go Down

12.00.00am GMT Wed 16th Mar 2005

The Welsh Liberal Democrats have attacked the Chancellor's announcement to lift the Stamp Duty threshold up to only £120,000. It falls short of matching their proposal of £150,000.

The Chancellor's attempt to sweeten the council tax pill was condemned as a smokescreen. This year's rebanding exercise in Wales has made clear that the only solution is to scrap council tax.

Mike German AM, Welsh Liberal Democrat Assembly leader, said: "Today's budget fails to meet the challenge. It falls short of helping first time buyers as the Lib Dem plans would have done. It also bribes pensioners to make council tax bills less painful instead of tackling the problem at the root.

"The Liberal Democrats have been pressing for raising the Stamp Duty threshold. I'm glad to see the Chancellor knows how to take a hint. But lifting it to £120,000 is simply not good enough given how much house prices have rocketed in recent years.

"To bribe pensioners over 65 with a couple of hundred pounds over council tax will make no difference for people whose bills will go up 22% from revaluation. So far they have been administering lumps of sugar to make the pill go down. The Government should take the tough decision of abolishing council tax altogether.

"The reality is that the poorest 20% still pay a higher percentage of their income in tax than the top 20%. The Liberal Democrats have published their proposals for a fairer and simpler taxation. The Labour Government has only delivered over-complicated tax credits and small refunds.

"It is now down to the Welsh Assembly Government to make the most of this budget instead of squandering money in election gimmicks."