Totally stupid idea in my opinion. At the moment they have to contend with people moving houses/areas to add extra admin burden, but think of the number of times some people change jobs. Changes in area and jobs together would increase the admin time and money wasted collecting the tax. Then there's the question of where is it collected? Most people don't live anywhere near where they work. Will it be collected at the work area or at the home area. Who's responsibility is it to pay the tax, the company you work for or you? How are they going to find out your income? Are they going to have access to everyones tax, income and financial data? What about all the people who work for cash in hand? At the moment they know what your house is like and judge you on that. This local tax idea puts so many different and changing variables into the pot that half the money would be spent trying to get the ever-changing info on peoples wages, let alone collecting it.
I notice they've also said p0rn should be available to everyone 16+:
http://news.bbc.co.uk/1/hi/uk_politics/3553273.stm
Didn't they back legalisation of drugs a while back too. Sure they don't want to start running for office in the netherlands rather than the UK?