It is clear that this Government loves tax, as senior Ministers such as Torsten Bell MP and the Chancellor of the Exchequer herself, Rachel Reeves MP, have called for moves towards property taxes in the past.
At present, council tax is the local charge for the use of local services. The current banding system reflects that larger homes make slightly greater use of local services, but intentionally, it is not a poll tax nor a wealth tax. Since 2012/13, the referendum principle has been in place to ensure local taxpayers are able to veto excessive council tax increases in a local referendum.
With a proportional property tax, implemented unfairly by this tax‑loving Government, many hard‑working families and pensioners would see soaring bills, both within local authorities and across the country. Annual revaluations could effectively become a tax on home improvements, and with no limit on increases, rising house prices could be used to stealthily hike taxes.
With the Autumn Budget set for November, speculation is rife that there will be a £14,000 tax bill on average for UK households and potentially an average tax bill of £33,000 for property transactions. That is the Government’s fault. They have the opportunity to put that speculation to bed and they choose not to do so.