I mentioned last week the Liberal Democrats are the only party who proposes scrapping the council tax and replacing it with a local income tax. If this Guardian article is to be believed, they could be about to lose one of their few distinctive local government policies:

Liberal Democrats are planning to soften their support for a local income tax to replace the council tax, a key policy for at least three elections. Instead they are expected to propose reforms to adapt the council tax.

Vince Cable, the Liberal Democrat treasury spokesman, is backing the shift in stance. He believes the party should not look to introduce, or press any coalition partners to introduce, a local income tax for at least one parliament. The shift would make the proposal a medium-term goal and serve to lift media focus on the uncertain implications for individual taxpayers during an election campaign.

The local income tax plan, defended on the basis that it is fairer than council tax, has often left the party exposed at election times.

As Stephen Tall at Liberal Democrat Voice points out:

If the Guardian report is true, it marks a third shift in Lib Dem thinking in recent months, alongside the commitment to cut the overall tax burden for the low-paid and middle classes, and the likely reforms of the party’s commitment to oppose tuition fees.

PS. Stephen Tall is also today's Daily Politico.