Liberal Democrats at Essex County Council have called for a fundamental review of how local councils obtain their finance. The group is seeking to charge local taxpayers on their ability to pay rather than the unfair council tax as now and a better deal from central government.

Cllr Tom Smith-Hughes, Liberal Democrats leader, said: “We have long argued the case for local taxpayers to be charged for council services on their ability to pay and overall, we are looking for a local government financial system that is fair and transparent. It cannot be right that, as at present, people who are on low fixed incomes and on pensions, have to pay the same amount of tax to their councils as some of the highest earners.

“We are anxious about the poor grant settlement for councils announced by the government recently, which will have a detrimental impact on the county council’s services, including for the elderly and vulnerable, over the next three years. Essex County Council is being asked to make savings on a scale that must eventually result in reduced frontline services for residents in the county, as well as imposing further above inflation council tax rises.”

The Lib Dems motion submitted to a meeting of the full council (30 October), received the backing of the Conservative administration.