MATHER CRITICISES " LABOUR'S PROPERTY TAX"

The Labour Party's proposals for a Property Tax based on an
annual levy of 1% of the value of homes has been strongly criticised by
Jim Mather, MSP for Argyll & Bute as it could be shown that this would
result in a substantial increase for most residents. Compared to the
present Council Tax, which is under review by most politicians because
of its inherent unfairness, a Property Tax based on a 1% valuation would
result in tax increases across Argyll & Bute averaging just under 40%.

Jim Mather said:
"After defending the status quo of the Council Tax for
many years the Labour Party has eventually conceded that it should be
replaced. Remarkably for a party that used to embrace the concepts of
justice and fairness they have resolutely refused to consider a tax
based on the ability to pay and their opposition to the SNP policy of a
Local Income Tax is a reflection of this. Recent reports are that they
are now looking at proposals to levy a tax on individual households
based on 1% annually of the assessed value.

When this proposal came under attack Labour initially
denied that this was more than "an option" that they were considering
but the figures that are being quoted are based on the work of the Burt
Committee. Sir Peter Burt was appointed by the Labour/Liberal Democrat
administration and reported in 2006 that a levy based on 1% valuation
would be required to bring in the equivalent level of income required to
replace the Council tax.

As this tax is based on property value it takes no
account of ability to pay or of the number of earners within a
household. It would impact most unfavourably on single occupants and the
less well off. Any improvements to property would result in spiralling
taxation. Another side effect, forecast by the Burt Report, suggested
that the re-introduction of a property based tax would reduce house
prices by around 15%. That would result in chaos in an already fragile
property market.

This proposal is ill considered. When it was first
floated it was dismissed out of hand by Jack McConnell, MSP, when he was
First Minister. It should be compared with the council tax freeze that
is presently in effect and the SNP aim to introduce a fair system
based on the ability to pay."



JIM MATHER MSP jim.mather.msp@scottish.parliament.uk