EAST Lancashire MP Peter Pike has warned the government to be cautious and not rush into a new taxation system to replace the council tax.

He told ministers to take time with the balance of funding review and ensure we get a new system that works.

The Burnley MP's comments came during a debate on Local Government Finance following proposals put forward by Lib Dems spokesman Edward Davey, to change Council Tax introduce a local income tax and bring back business rates reformed in line with land values.

He said the policy was "unworkable''.

Mr Pike warned Mr Davey that the Tories introduced the current tax system after Nigel Evans lost the Ribble Valley by-election in 1991 to the LibDems, replacing it with a system that was seriously flawed and that rushing into a new system could lead to the same problems again in a few years.