18 September 2007
Harriett Baldwin, Conservative Parliamentary Candidate, West Worcestershire, expressed concern this week at the small print of the Liberal Democrats' new tax plans, which back a move to European-style house price taxes.

Conservatives are warning that this could give Gordon Brown the green light to extend the new house price tax recently introduced in Northern Ireland to mainland Britain.

  • Calls for 1% house price tax: The detail of Sir Menzies Campbell's official tax plans pledges a "long-term commitment to a system of land value taxation" on domestic properties. It talks up the Danish system of a "national 1 per cent property tax" and regular revaluations. It admits that their policy of local income tax and "removing the direct taxation of property at all" is not sustainable, and therefore "taxation of property should be retained" via a "better mechanism".
  • Labour Ministers back the tax: Such a house price tax system has already been introduced in the United Kingdom by Labour Ministers. Since April 2007, all homes in Northern Ireland are charged a 0.63% tax on the value of the home each year (local taxes in Ulster are lower than on the mainland), combined with intrusive rights of state inspectors to enter people's homes. Liberal Democrats' backing for land taxes gives a signal to Gordon Brown to introduce the taxes in England. A 1% house price tax was also recommended by the Lib-Lab Scottish Executive's report on town hall taxes last year.
  • Higher taxes in Malvern Hills District: A new 1% house price tax would mean a yearly tax bill of £2,431 on an average home in the area.

Harriett Baldwin commented:"Liberal Democrats have already said they want to hammer families with a joint income of more than £70,000 with punishing taxes. Now the small print of their tax plans reveals they want to impose new house price taxes too.

"Labour Ministers have already introduced such a tax in Northern Ireland to tap into the recent rise in property values. Families and pensioners who saved and improved their homes face soaring tax bills, without any improvements in their local services. Just because house prices have risen doesn't mean that local residents can afford higher local taxes.

"At a time when the housing market is so bruised, it is alarming that Liberal Democrats are now giving Gordon Brown the green light to impose a new house price tax on Worcestershire. Conservatives are now the only party pledging to stop these new taxes."

What lies beneath... those Lib Dem tax plans in full | click here."