Re Larry Elliott’s article (A property tax based on annually uprated values would be a gamechanger, 9 April), a proportional property tax (PPT) is indeed fairer than council tax. In particular, it reverses the bizarre taxing of occupants rather than owners. But it wastes an opportunity to improve the whole UK property tax system. According to the Office for National Statistics, land value represents 60% of the UK’s wealth, and 70% of the land is owned by 1% of the population.
Concentrated land ownership is the driver of the UK’s gross wealth inequality and housing misery for so many. Why should vast country estates and farms be inherited tax-free or bought by billionaires? No one made land – it is our common wealth, and a land value tax (LVT) is how it can be fairly shared.
The Fairer Share campaign has suggested a £100-a-month maximum increase above council tax as part of its PPT proposal. It would be more progressive to instead set an LVT rate equivalent to the current lowest council tax rate (Westminster’s) and increase that as “levelling up” progresses. For a revenue-neutral outcome, rates could be set initially by each local authority to obtain the same income as council tax. LVT should replace all UK property taxes, not just council tax and stamp duty.Carol WilcoxSecretary, Labour Land Campaign
Larry Elliott rails against the unfairness of council tax, but proposes a solution with even more unfairness. The purpose of council tax is to pay for council services, which have little or nothing to do with the value of your house or the land it sits on.
I have my roots in London going back generations, and have been forced to move out due to property prices, ending up unwittingly in an equally expensive area, and having paid
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