PRESS RELEASE
29 November 2006

Growing threat of house price tax on North East Cambridgeshire homes warns Malcolm Moss MP
Lib-Lab review into town hall finances recommends 1% house price tax

Malcolm Moss MP, this week, expressed concern over the threat of a new house price tax on North East Cambridgeshire’s family homes. A review into town hall finances in Scotland has recommended that an annual 1% house price tax should replace council tax. At the same time, controversial legislation to impose a house price tax in Northern Ireland has been forced through Parliament by the Labour Government.

·            House price tax north of the Border? A review into local government finance, commissioned by the Lib-Lab Scottish Executive, has recommended the imposition of a 1% house price tax on local residents - whether or not they own their home.

·            House price tax backed by Labour: This house price tax is already being introduced in parts of the UK by Labour Ministers. From April 2007, Northern Ireland residents are being levied a tax of 0.633% on their home’s value every year (local taxes in the Province are lower than in England). Gordon Brown’s review of town hall finances in England - headed by former Labour councillor and Brown crony, Sir Michael Lyons - is actively considering how to implement the scheme in England.

·            North East Cambridgeshire would be hit hard: The current average council tax in England is £1,056 in 2006-07.  Under a 1% house price tax, the average property in England would pay a local tax bill of £2,027 a year. The average house price in Fenland is currently £139,666 a yearly 1% tax bill would equate to £1397. This is a potential tax hike of £412 on the previous £985 council tax. Homes with ‘site positive’ features like patios, nice gardens, double-glazing, conservatories or extensions would pay much more under such a scheme.

·            Liberal Democrats support the tax: Liberal Democrats’ tax policies, published in September, also endorsed the principle of a new house price tax.

Malcolm Moss MP commented:

 “It is increasingly clear that Labour Ministers are plotting to introduce a house price tax – and deliberately tap into the rise in property values in recent years. It’s been imposed on Northern Ireland from April. Now Scotland is considering it too. I fear we’re next.

“The Government’s plans for council tax revaluation mean that inspectors would be feeding detailed information about our houses in a big brother database about features deemed to have a positive effect on a property’s value in order to maximise the tax receipts flowing towards the treasury.

“Families and pensioners who have saved and improved their homes face the threat of soaring tax bills, without any improvements in their local services. Just because house prices have risen doesn’t mean that North East Cambridgeshire’s residents can afford higher local taxes.

“Law-abiding, decent people are already struggling to meet the rising cost of mortgages, utility bills and local taxes. These sinister Lib-Lab plans for weighty tax bills possess all the hallmarks of greedy, oppressive Government and aren’t welcome on doorsteps of Northern Ireland, Scotland or North East Cambridgeshire. Both I and the Conservative Party are totally opposed to these taxes.”