Last week Labour attempted to, unsuccessfully, force through a new homes tax in Parliament, despite having rubbished the concept whilst in government and Labour remains committed to the new tax with considerable introductory costs that would either fail to be self-financing – a tax con – or would require a wider tax net to include more households.
This is pantomime politics but nobody is laughing. It marks a dangerous lurch to the hard left and associated high-tax policies.
My great fear is that, were Labour to be successful in introducing the new tax, it would set a precedent by which the majority of homes could be affected. The road to the Treasury’s coffers are paved with temporary or top rate taxes which, through the relentless tradition of mission creep in our nation’s tax history, have ended up affecting us all
I firmly believe that my role as Crawley’s MP is to stand up for people who have worked hard and saved hard. Those whose hard work has earned them a home should not have to be clobbered with a homes tax, funding government snoopers across the country charged with revaluating homes for council tax. This is precisely the reason why this Government has ruled out a council tax band revaluation – which would be costly and complex.
The Government are, however, clear that those with the broadest shoulders should bear the greatest burden, which is why it has increased tax on the richest in every Budget so that the top 1 per cent of taxpayers with incomes over £150,000 account for a quarter of all income tax receipts and the top 5 per cent with incomes over £68,000 for half of income tax.
Rather than taxing peoples’ homes, this Government has ensured that the richest share their fair financial burden through: a 7 per cent higher stamp duty on expensive properties; a 15 per cent rate of stamp duty on corporate owned properties; a cap on reliefs; greater resources for HMRC in tackling tax evasion and avoidance; and closed tax loopholes that cost the Exchequer to the tune of £1 billion under the previous Government. Conversely, from April, Government will have cut taxes for 42,404 Crawley residents and lifted 1,716 local families out of paying tax altogether.
I assure residents that I will fight to counter any attempts to introduce the Homes Tax. Once introduced – and undoubtedly after the next election – the tax would represent a threat to every home. Such a move would fly in the face of aspiration and threaten one of our most ancient beliefs – an Englishman’s home is his castle.