Easington MP Grahame Morris has hit out at Minister for refusing to consider replacing Council Tax with a Proportional Property Tax.
In a Parliamentary Question to Housing, Communities and Local Government, Mr Morris called on the Government to bring forward proposals to replace Council Tax with a Proportional Property Tax. The Minister rejected the scheme stating he had no plans to replace council tax with a Proportional Property Tax.
Grahame Morris Labour, Easington
To ask the Secretary of State for Housing, Communities and Local Government, if he will bring forward legislative proposals to replace Council Tax with a Proportional Property Tax.
Luke Hall Minister of State (Housing, Communities and Local Government)
The Government does not have any plans to replace council tax with a proportional property tax, but keeps all taxes under review.
Mr Morris has been leading a campaign for change as the burden of council tax falls most heavily in the poorest communities. Mr Morris has called for fair taxes and an end to millionaire mansions in London paying less than an average home in Easington.
A Proportional Property Tax would replace Council Tax, ending the postcode lottery with a fair tax apply equally to all properties across the UK. Instead of an arbitrary council tax, a proportional property tax would be levied at 0.48% of a home’s value. Data from the Fairer Share campaign found the average saving for households in Easington would be £900 a year. Nationally, 76% of households would pay less than they do currently with council tax.
There are safeguards for those who would pay more with any increase on what you pay being capped at £1200 a year. Those who are unable to pay will have options to defer payment. A change to a Proportional Property Tax would also result in Stamp Duty and the Bedroom Tax being abolished.
Speaking following the Minister’s response Mr Morris said:
“This is a simple action to help rebalance the economy and create a system of property taxation that is fair and equally applied across the country. For the most deprived community, with low property values, the savings compared to council tax are significant. This would be an economic stimulus for our regions, and every household in the Easington constituency would save money compared to council tax.
A Proportional Property Tax would simplify the tax collection process. This tax will be levied against property owners, removing 8.7 million families renting their homes out of property taxes. Local Government would have less administrative work with the tax obligation transferred from tenants to a smaller number of landlords. Councils would no longer be forced to pursue struggling tenants for council tax debt.
This simple change would be transformative for communities and local economies like East Durham, and the injection of additional disposable income into the area would support our high-street and town centres creating much needs jobs and opportunities.”