LOCAL Isitfair council tax campaigners have condemned as "terrifying" the government's latest idea for a "death tax". Ministers have come up with a plan which would defer payment until after death - a plan which Isitfair supporters believe could leave families with spectacular tax debts . They want the government to look at ways of curbing council tax rises, not at "devious schemes" to make payment easier. "It is completely outrageous," said Isitfair leader, Christine Melsom from Headley Down, who pointed out that council taxes had increased by up to 70 per cent since 1997 and that those on low and fixed incomes were now paying more than 25 per cent of their income in council tax. The "deferred payment" would allow homeowners to pay less or not at all, but their children would pay in full, with interest, when they inherited the property. An average Band D bill of £1,214 a year would mean a debt to the local authority of £21,251 after 10 years and £75,986 after 20 years at the current UK gilt rate of 4.37 per cent. Tories have condemned the idea as a means of taxing the increase in property prices since the 1990s. They point out that the number of householders paying inheritance tax has doubled under and pensioners who have worked, saved and invested in their homes are to be targeted yet again. The plan is to be tried out in Northern Ireland,and has been put forward in time to be included in council tax reforms scheduled for 2007. Every home in the country is being revalued and many householders, and especially those who have carried out home improvements, may find their home in a higher band. According to Christine Melsom, in Wales, where revaluation came into force in April, it has already caused uproar with Isitfair members reporting increases in their bills of up to 62 per cent and thousands of people seeking to challenge their new banding. "We know that 68 per cent of homes were moved to a higher council tax band," said Mrs Melsom. Isitfair campaigners hold out little hope that Sir Michael Lyons, commissioned by the government to carry out an independent review of council tax, will improve their lot. Due out in December, his report is expected to include a homeowner tax under which property owners would pay more than those who rent. It would be another "gross injustice", according to Isitfair, whose members were under the impression that council tax was levied for services used by home owners and tenants alike. Incensed by the thought that the council tax reforms will leave them worse off, Isitfair campaigners have launched a nationwide petition to be presented on the floor of the House of Commons by local MPs. Already on board are East Hampshire's Tory MP Michael Mates and North East Hampshire's Tory MP James Arbuthnot. The petition declares that "the year-on-year, inflation-busting increases in council tax are causing hardship to many and take no account of ability to pay: further that the proposed property revaluation and rebanding exercise will make an already flawed system even worse." The petitioners are calling on the House to vote to replace the council tax with a "fair and equitable tax" that takes into account an ability to pay from disposable income. The petitioners want a tax based on a system free from any geographical or politically motivated discrimination, that would see an increase of around two per cent on basic and higher income tax and a small increase in VAT that would add about two pence to every £1 spent on goods and services. The money would be collected using the existing Inland Revenue and VAT systems and distributed to local authorities in the same way that almost 75 per cent of money is currently supplied by central government. According to Isitfair: "Our calculations show that, on average, you would have to have an annual income of more than £47,000 before you would be any worse off under the proposed Isitfair scheme." Christine Melsom and her supporters are now urging people to sign a copy of their own constituency petition with a view to an October presentation.
