Local government should move to a system of local income tax (LIT), according to former Tory local government minister, Michael Portillo. Mr Portillo, who helped create the council tax after the spectacular failure of the poll tax, claims a system of nationally-collected local income tax would be the best option to combat problems with the local government finance system. However, his comments come as Scottish local government considers whether it should move to a local income tax for council services. A study, carried out for Glasgow city council, claims the plan could add 3p for ever £1 on income tax. And that figure could rise to up to 6p for other councils.
