THE Liberal Democrats say replacement of Council Tax with a local income tax (LIT) could save Teesside families hundreds of pounds a year.

Councillor Tom Mawston, leader of the Liberal Democrat group on Middlesbrough Council, said the average Middlesbrough family could save more than £500 a year under LIT.

He said: "LIT is calculated on the income of the people living in a house, and as with any system, there will be people who pay less and people who may pay more than under the current system.

"However, overall, if the total income of the people living in a property is low, then LIT will be lower than Council Tax overall for that household. People will pay based on their ability to pay."