Tuesday, 11 August 2009

Local Property Tax? No Thanks



Labour have plans to replace the council tax with a local property tax. The tax would be based on the valuation of individual homes and would see those who make improvements paying more. So don't even think of building that conservatory for your retirement or building that extra bedroom over the garage!

Isn't a property tax a retrograde step? The system at present is a property tax so what would be different with labour's new plan? Ah, I see the difference. This new policy would raise more money and labour consider that, if you live in more than a small box, then you should pay for the privilege. They're afraid to suggest changes to the present council tax bands (that would be too unpopular) so are now quoting the mantra 'property is an indication of wealth'. So it's a revisit of the Burt Report 2006 for labour, when Sir Peter Burt was critical of the effectiveness of the council tax, in that it penalised people on lower incomes and he dismissed local income tax as a solution.

What Sir Peter forgot to add in his report is that income is also an indication of wealth, a much more accurate indiction too, so a local income tax should not be ignored.

Sir Peter calculated that there were around 20,000 pensioner households in Scotland fitting the description 'asset rich but cash poor'. I should think today that number is far higher. Pensions have been looted and shares have fallen drastically while interest rates on any savings wouldn't pay for a haircut.

The SNP want a local income tax and the Greens a land tax. Both have their pros and cons but they are the proposals we ought to be debating, not this labour one which seems like a return to the old rates but with a modern twist - calling it 'local'.

18 comments:

McGonagall said...

Well they had to come up with something Subrosa and, bereft of ideas, they fall back on this. The Labour lot are just contentious spirits.

G Laird said...

Dear Subrosa

Labour are the party of social injustice and discrimination.

It is what drives them.

People hate them with passion.

They seek to punish the poor and those who better themselves.

Yours sincerely

George Laird
The Campaign for Human Rights at Glasgow University

Mark Wadsworth said...

I'm completely with The Greens on this one.

OK, overall taxes are far too high, but land value tax is the least-bad tax by a long chalk.

Anonymous said...

What the hell happened to Gray & Alexander's 'thinktanks', this is rehashed pish fae last year.

0.9% is what Burt recommended.

Laboru say it will be lower.

We think we've seen Labour in total dissarray thus far, wait and see Scottish labour after the 2010 election when Gordon Brown is swept from power.

Out of ideas.

Bereft of Vision

Lacking aspiration

Allan said...

Sounds awfully like the usual reverse sobbery, which play's well in certain parts of Scotland, to me. The lack of thought process displayed here shouldn't really be a suprise, but i am staggered that this appears to be the best idea the Gray man has come up with.

Of course, anyone thinking of upgrading their Central Heating to a more energy efficiant model would be stung by this. A total no-brainer.

Oldrightie said...

Abolish local tax. Add a ring fenced sum to income tax, sorted.

forfar-loon said...

If the mooted property tax is as fair as Labour suggest, can we expect to see them campaigning for it to replace income tax? I suspect not.

Dramfineday said...

Oh well - back to bricking up the windows again - just a minute would that get taxed as a home improvement?

BrianSJ said...

Envy is their driving force; clumsy centralist implementation of micro-detail their method.
The old rates used to charge more for home improvements; put in a coloured bathroom suite (probably avocado then) and your rates would go up.

subrosa said...

Aye indeed scunnert.

subrosa said...

Social injustice right enough George.

subrosa said...

I haven't quite made up my mind about land tax Mark because I haven't as yet managed to find all the information.

subrosa said...

Should I take my new condensing boiler out now Allan? Auch no, I've a feeling labour will get slaughtered for thinking backwards.

subrosa said...

Is that's what should happen in England OR? I remember reading a few weeks ago that revaluations are going on down there.

subrosa said...

I'm sure it would under this system Dram. I'm surprised they didn't just suggest a window tax. That's how this tax started wasn't it.

subrosa said...

I never lived in Scotland under the old rating system Brian but I believe it was a lot dearer than the English system at the time.

Avocado bathrooms - those were the days. Every house had to have one.

Anonymous said...

Is this not just going back to "rates"?

They really are totally bereft of all ideas if this is the best that they can do.

Penalise people for looking after or improving their houses...


Brilliant!!

subrosa said...

It seems like it Tris, but I'm not too well versed in the old rates. Perhaps others can give more information.

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