COUNCIL tax has long been the subject of controversy. For many years now, headlines have screamed out about extortionate rises in bills, residents struggling to pay the tax and those taking a stand - usually pensioners - being rewarded with a night in the cells.

Campaigners have repeatedly called for a change in the system and a report due out today is expected to suggest just that.

The Lyons review of local government funding calls for two extra bands - one for the most expensive homes and another for cheaper properties.

But will the move go far enough to settle the great council tax dispute or does the system need completely overhauling?

Tony Fowle co-founded pensioners' action group Old English Group Wessex, which has continuously campaigned for a fairer tax.

He said: "The council tax system is rotten to the core, it stinks. It needs scrapping lock, stock and barrel and a system introduced whereby people are billed for local taxation on their ability to pay.

"This doesn't help this ridiculous situation of an old lady living on her own in a ruddy great house which she bought with her deceased husband and she's stuck with a socking great bill.

"What they're doing is just cosmetic surgery on a beast that's already stone dead.

"Your council tax shouldn't be more than two to three per cent of your income. That's what was said when it was set up.

"With most pensioners, like me, it devours between 10 and 20 per cent of our gross income. I'm paying about 11 per cent of my total income in council tax."

Dennis Mallett, another founder of the group, thought the idea a good one in principle, but said the system still needed further changes.

"It still needs another couple of bands. I suggested a long time ago that we should have an extension of the bands. If somebody can afford one of those beautiful houses down at Sandbanks they can afford a lot more council tax.

"But many pensioners are living on fixed incomes and they're being particularly hard hit. I think it's a dreadful tax in any case."

MPs were also sceptical about the proposed changes.

Sir John Butterfill, Conservative MP for Bournemouth West, said: "Council tax should pay for the services a local authority provides.

"The government is trying to make it into a progressive tax that redistributes wealth, which is not what council tax is for. If we want to use tax to redistribute wealth the way to do it is through income tax.

"It doesn't cost four times as much to empty the bins at a big house as a small one. It doesn't cost more for their police and schools, so there's no reason to charge them more."

Annette Brooke, Liberal Democrat MP for Mid Dorset and North Poole, said: "I think at this point it's a real fudge because I think the council tax needs scrapping.

"It's not going to help pensioners who are struggling. Pensioners are not necessarily in the smallest properties at all.

"We all think it would be a good idea to rake in a bit more money from Sandbanks, but there are millions of pensioners who really get very anxious about balancing the books."

But some felt the changes could have a silver lining in that they would make life easier for first-time buyers.

"They should help the youngsters," said Tony Fowle.

"We've got to give youngsters a chance to get on the housing ladder. I've got grandchildren that are struggling to even get a deposit together."

Dennis Mallett added: "They're our future, we've got to get them into acceptable accommodation so certainly an additional lower band is a good idea."

But David Barr, negotiator at Fox and Son estate agents in Poole, was doubtful the additional bands would make much of a difference.

"It may help the lower end buyers when they're factoring in affordability, but a difference of £30 or £40 a year - is that really going to make a difference?

"My gut feeling is it won't."