Labour has come under fire for its manifesto pledge to replace council tax with a Land Value Tax (LVT), which would hit people with gardens the hardest.
Foreign Secretary Boris Johnson said: “Corbyn’s Garden Tax will send tax bills soaring, house prices plummeting, plunge people into negative equity and force families to build over their back gardens.”
He added: “This nonsensical policy sums up how Jeremy Corbyn, along with his SNP, Lib Dem and Green comrades in the coalition of chaos would bring misery to every single family in Britain.
"It would wreck our economy, devastate farmers and increase the cost of food on the shelves.”
A Labour spokesman dismissed the claims as "desperate nonsense from the Tories". The manifesto contains no details about how the tax would be applied.
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But analysis commissioned by the Conservatives shows it would result in yearly tax bill of £3,837 for an average family home in England – a massive 224 per cent increase on the current average council tax bill of £1,185.
In some places the increase could be much higher based on current values and council tax levels.
The Labour Land Campaign policy paper suggests introducing LVT gradually at first by charging 0.85 per cent on the value of homes in replacement for the council tax.
But it would rush in a three per cent rate on estates, privately rented properties, new build homes and holiday homes.
Shadow Chancellor John McDonnell has claimed that that a Labour Government will not add to the taxes of people earning below £80,000.
The Institute for Public Policy Research (IPPR) has said the LVT might become a “tax on gardens”, which could tempt homeowners to sell off gardens to lower their bills.
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The IPPR warns that there will be “many losers” and the tax “might push some heavily mortgaged homeowners over the edge”.
Land Value Tax would be tax on the rental value of land, not counting houses or any other structures built on it.
This means that homeowners with gardens and farmers with agricultural land could see bills rise but those in flats without gardens could pay less.
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The Labour manifesto said: “A Labour government will give local government extra funding next year.
“We will initiate a review into reforming council tax and business rates and consider new options such as a land value tax, to ensure local government has sustainable funding for the long term.”