Jeremy Corbyn's garden tax policy could increase council tax bills, Tories claim
The small print of Labour’s manifesto contains proposals to replace council tax and business rates with a Land Value Tax on homes and gardens.
Labour has pledged to use the levy, based on land value rather than property prices, to raise money for their spending splurge.
The Conservatives put the average cost at nearly £4,000 but in areas where land values are higher, such as in Mr Corbyn’s constituency of Islington, north London, it will be considerably more.
The details are not spelled out in the manifesto but a blueprint for a land value tax was drawn up two years ago by Labour Land Campaign.
Shadow Chancellor John McDonnell and Mr Corbyn have both praised the group.
Conservative believe the average tax bill could cost £4,000 in areas where land values are higher
The campaign called for an introductory rate of 0.85 per cent with a higher rate of three per cent for landlords and owners of second homes.
But it said “the initial concessionary rates would be raised gradually to the standard rate of three per cent”.
Labour has pledged to use the garden tax based on land value rather than property prices
This is desperate nonsense from the Tories. Labour has no such plans.
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A Tory analysis estimates this would result in a yearly tax bill of £10,149 for an average family home in Islington – an 881 per cent increase on the average council tax bill of £1,034. In Hackney, the east London constituency represented by shadow home secretary Diane Abbott, families can expect to pay an extra £8,581 on the average council tax bill of £841.
And in Mr McDonnell’s constituency of Hillingdon, west London, the average tax bill would soar from £1,260 to £6,859.
The calculations are based on the assumption that land value is about 55 per cent of the price of a house.
A Labour spokesperson claims Mr Corbyn has no such plans to increase costs The TV election debate – in pictures Wed, May 31, 2017
The televised debate saw Jeremy Corbyn, Amber Rudd, Paul Nuttall, Caroline Lucas, Angus Robertson, Tim Farron and Leanne Wood go toe-to-toe
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The politicians taking part in the debate
The Tories say families may have to sell off their gardens to cut their tax bills. Andrew Percy, Northern Powerhouse Minister, said: “Corbyn’s plans will send bills soaring.”
But a Labour spokesman dismissed the criticism, saying: “This is desperate nonsense from the Tories. Labour has no such plans.”