Local authority chiefs in England and Wales have revealed radical plans to scrap the unpopular council tax as thousands of protesters gear up for a protest against the charge this weekend.
The Local Government Association (LGA) argues council tax is unfair because it is not related to incomes and voters cannot see a clear connection between local taxes and spending.
The LGA, which represents councils led by all parties, also wants councils to be able to raise a larger proportion of their own income so that they depend less on central government.
"The council tax system is buckling under the weight of new responsibilities and expectations placed on local government to deliver more and better public services," LBA Chairman Sir Jeremy Beecham said in a statement.
Council tax, which is based on the value of property, has become unpopular due to inflation-busting increases, culminating in a record rise of 13 percent last year.
The "IsItFair" group, which campaigns for its abolition, will deliver a petition with more than 35,000 signatures to Prime Minister Tony Blair's Downing Street office in London on Saturday, followed by a rally in Trafalgar Square.
The LGA said a rebranded property tax, with new bands to supplement the current eight levels, should be considered.
The government will publish the result of a study on the balance of funding between government and councils in July.
The latest proposals would allow councils to regain control of business rates and to get a share of income tax.
Business rates, collected locally and then redistributed nationally by the government, should be returned to local control to increase accountability, the LGA said.
The proposals also include a basket of smaller taxes and charges, such as local sales and tourist taxes in hotels.
Local taxation turned into a political hot potato in the late 1980s when the poll tax sparked riots and contributed to the downfall of Conservative Prime Minister Margaret Thatcher.
Changes to the local authority funding would be the third overhaul of local taxation in 15 years following the demise of rates in 1989 and the poll tax in 1993.
The Local Government Association (LGA) argues council tax is unfair because it is not related to incomes and voters cannot see a clear connection between local taxes and spending.
The LGA, which represents councils led by all parties, also wants councils to be able to raise a larger proportion of their own income so that they depend less on central government.
"The council tax system is buckling under the weight of new responsibilities and expectations placed on local government to deliver more and better public services," LBA Chairman Sir Jeremy Beecham said in a statement.
Council tax, which is based on the value of property, has become unpopular due to inflation-busting increases, culminating in a record rise of 13 percent last year.
The "IsItFair" group, which campaigns for its abolition, will deliver a petition with more than 35,000 signatures to Prime Minister Tony Blair's Downing Street office in London on Saturday, followed by a rally in Trafalgar Square.
The LGA said a rebranded property tax, with new bands to supplement the current eight levels, should be considered.
The government will publish the result of a study on the balance of funding between government and councils in July.
The latest proposals would allow councils to regain control of business rates and to get a share of income tax.
Business rates, collected locally and then redistributed nationally by the government, should be returned to local control to increase accountability, the LGA said.
The proposals also include a basket of smaller taxes and charges, such as local sales and tourist taxes in hotels.
Local taxation turned into a political hot potato in the late 1980s when the poll tax sparked riots and contributed to the downfall of Conservative Prime Minister Margaret Thatcher.
Changes to the local authority funding would be the third overhaul of local taxation in 15 years following the demise of rates in 1989 and the poll tax in 1993.
