Chancellor's handout won't reduce council tax in Wales' hardest hit authorities

12.00.00am GMT Wed 8th Dec 2004

A £7m handout from Gordon Brown to help keep down council tax bills in Wales will have no impact in three of the councils facing the largest rises.

Welsh Liberal Democrats have learned that the money - given to Wales as a direct consequence of the Chancellor's attempts to keep down council tax in England - is to be shared among just 19 of Wales 22 local authorities. Cardiff, Wrexham and Gwynedd will not receive a penny.

Mike German, Assembly leader of the Welsh Liberal Democrats and spokesman on local government, said: "This decision adds another twist to the sorry story of next year's council tax bills. The fair way to distribute this money would be to share it between all 22 local authorities in Wales. Taxpayers in Wrexham, Cardiff and Gwynedd thought they were going to get some help - but it isn't coming.

"The rebanding of properties in Wales - two years ahead of England - has had a random effect with some parts of Wales facing higher bills than others, based on the fluctuations of the housing market. And as bills go up more and more people are realising that the unfair council tax takes no account of people's ability to pay.

"That's why Welsh Liberal Democrats are committed to scrapping council tax and replace it with a local income tax."