DURHAM City Council is calling on the Government to scrap the council tax because it is unfair on poorer people.

Concern at the level of the tax, particularly the increases set by the county council, has led to the setting up of the Durham Taxpayers Alliance.

The Liberal Democrat-run city council wants the council tax replaced with a local income tax.

Carol Woods, cabinet member for finance, said: "The poorest 20 per cent of people now pay nearly six times more than the richest 20 per cent, as a proportion of their income.

"This is incredibly unfair and Durham City Council should protest against this.''

She said shortfalls in Government funding of the city council led to "disproportionate'' increases in the bills local people had to pay.

The council is also objecting to Durham University's controversial decision to axe its East Asian Studies Department because of the university's overall funding problems.

Councillor Woods said the university should try to find alternative ways of funding the department.

"The loss of this department will be felt across the business community in the North-East," she said.

"We have a lot of investment in this area from East Asia and this department is a valuable resource for the region."