Is this just council tax in another name? In any event the council tax system needs revising because there are so many anomalies but the cost of doing so and the time involved would be prohibitive.
There are lots of issues with regard to values and type of property in the present system – for example, residents in some areas may pay relatively less than others even though their properties are now much more valuable because council tax was set at a time before gentrification or other improvements.
But it is all about the optics – it is not just about introducing another tax, a separate tax would have to be consulted on, would take time to badge and produce – so the easiest way to increase revenue would be to raise council tax.
But it all depends on by how much needs to be raised and whether more structural changes take place.
STAMP DUTY SUBSTITUTE
We are very much in favour of incorporating this tax as a substitute for stamp duty as the latter is a tax on moving.
We are trying to encourage growth; as a country, we want to see improved job and social mobility.
Stamp duty stops that, particularly among those on the margins, such as first-time buyers, as it is such a big investment.
We can see the advantage in taking tax from people who have benefited from an increase in property values but the fear is that it is going to impact the vulnerable in particular.
RETIREMENT WORRIES
Those of retirement age, say in their late sixties, might be able to move into a flat or bungalow (should they be able to find a suitable one) with not too much of an issue.
But for those more on the margins, say in their early eighties, who are not so mobile and don’t want to move out of an area where they have lived comfortably for many years near family and friends – why should they have to move some distance where property prices happen to be cheaper?
We understand the issue of right sizing and getting people in the right properties as far as possible but forcing people to downsize, particularly the most vulnerable and compromised, must be avoided.
