According to a conservative spokesperson, the labour Government are plotting to introduce a house price tax, which may replace the current council tax. According to the conservatives if this was to happen it would rise to more than £2,000 per year as opposed to the average council tax bill of £1,056 per year.
However, the Liberal Democrat have dismissed these allegations but do admit that the council tax needs to be replaced with a fairer system which is based on peoples ability to pay. A local government minister has also dismissed the claims as an ‘attempt to foster scare stories about council tax in England.’
Our view
Make no mistake all parties are looking at ‘wealth’ taxes as implemented in many EU countries. Part of your tax is based upon how much you are worth, this includes your property.