Labour want to tell you they’ve released a raft of housing policies to address rising land prices in the UK. What they don’t want you to know is their plans involve a new national ‘progressive property tax’ on every home. That tax will cost you on average £375 more in tax every year.
And what they really don’t want you to know is that family homes like those with gardens will pay even more under their new plans.
Read our article below for the precise plan of Labour’s tax raid, and how they want to fund their new housing policies.
What is Labour’s Housing Policy?
Labour’s policy document calls to implement a ‘progressive property tax’ – a new homes tax based on house prices. Labour’s plan is to send you an annual tax bill based on the value of your house, with homeowners charged more if they invested more into their home.
Not only does Corbyn’s Labour want to levy a new tax on your home. He wants to spend more energy prying into where you live. Labour wants regularly updated property values, with rates “set nationally, rather than locally determined”. This means government tax inspectors, with snoopers inspecting your home and garden, to precisely evaluate the worth of your home – so Labour knows exactly how much they can extract from you.
How is Labour Funding their Housing Policy?
Labour is clear that they will try to raise more tax revenue. Their own policy document says they want a tax that “could generate more revenue”. Make no mistake: this is a tax raid on middle England’s homes.
The current tax system intentionally does not tax home improvements until a house is sold. But Labour’s new tax would see those who save and work harder to improve their home punished by paying more in ‘progressive property tax’ every year.
The current system also provides a 25% discount for single person households, who make less use of local services. By contrast, Labour wants to scrap the single person discount, calling it an ‘inefficiency’ to tax people less. Their own policy disregards how the current system offers tax discounts for the disabled, carers, and granny annexes, calling these situations “overconsumption of housing”.
How much will Labour’s Housing Policy Cost You?
Figures published this month show that Labour’s new tax will cost an average home £375 more every year in tax.
Over just a single five-year Parliament this would mean families having to find £1,875 extra just to stay in their home.
- The average property price in England is £243,128. For the average homeowner, then, the annual homes tax bill would thus be £1,701 per year.
- In London, the average house price is £463,283. For the average London homeowner, then, the annual homes tax bill would be £3,243 per year.
- The average detached home in England is worth £346,474. The average detached homes’ tax bill would thus be £2,425 per year.
This excludes the undisclosed plans by Labour about how much more they will charge higher-valued homes.
How are the Conservatives ensuring I keep more of what I earn?
The Conservatives have been focused in government on reducing your tax burden and since we came to power council tax is 6 per cent lower in real terms than under Labour. And Conservative councils continue to provide lower levels of council tax than Labour or Liberal Democrat councils – on average £93 cheaper for a band D home in Conservative-run areas compared to Labour-run councils and £137 cheaper than Liberal Democrat-run councils.
Take Bracknell Forest for example. The Conservative team have worked hard in council – and as a result, the local team made savings of £11.6 million without cutting a single service.
And we have been ruthlessly cutting income tax to save money for 32 million people. That means we have more money to invest in public services while letting you keep more of the money you earn.
But there is still more to do. If you want to stop Labour coming into power and taxing your home, why not show your support and help us stop Labour’s homes tax? Sign up to keep in touch about Conservative policy.