parties  plans for council tax anger at council tax rises spilled over into mass protests in 2003  when the average english bill rose 12.9%.  pensioners  protests spread - some marched  others simply refused to pay the increase. some  such as 83-year-old elizabeth winkfield  said they would rather go to jail. the audit commission found the whole local government finance system was  fundamentally flawed  and all three of the main parties have said the system has to change.  labour says it wants to retain the property-based tax but reform it to make it fairer and says there is scope for councils to become more efficient. they say they are already helping pensioners with council tax bills  with a £100 lump sum for the over-70s and last year the government capped some local councils  budgets to keep demands down. deputy prime minister john prescott has said the current system is not sustainable in the long term and said there would be  radical reform . the party says this year s increases will be the lowest in a decade. a report last year looked at increasing the number of council tax bands and other forms of local taxation  such as reformed business rates  although no decisions have been made. an independent inquiry into its findings  the lyons review  is due to report back at the end of 2005.  the tories have promised a reduction on bills for pensioners  who they say have been hardest hit by year-on-year increases in council tax. they say they can save £4bn on  government waste   of which £1.3bn could be used to cut pensioners  bills by an average of £340. it would not be means tested  say the tories  because that would create more bureaucracy and could discourage people from saving for their retirement. instead households where council tax payers are over 65 would get a rebate covering half their bill  up to a maximum of £500. the tories also say they are suspicious about any proposals to revalue homes - currently graded according to their value in 1991 - because they believe seven million of homes could move up a band.  the liberal democrats want to do away with the council tax altogether and switch to a local income tax of the kind seen in the usa  norway and switzerland. the rate would be set locally  but administered by the inland revenue which they say would save at least £300m. they say the council tax is the most unpopular and most unfair tax in britain  because it puts a  ceiling  on what the richest pay. the party says it would aim for a £5 000 tax-free personal allowance  or a £7 000 allowance for the over-65s. after that income would be taxed up to £100 000. the lib dems say their plan is fairer  more efficient  has already been tested abroad and offers more accountability.
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