Britain's unfolding economic disaster

Tuesday, 05 August 2008 16:42
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It becomes increasingly difficult to keep track of all the ramifications of Britain's unfolding economic disaster.
Reposessions rise by 40%
Northern Rock hits taxpayer for £3bn as losses mount

None of this would have happened if the Labour government had introduced LVT at some time within the first five years of its coming to power. The Campaign was amongst those urging this on Labour's policy making think tanks in the early 1990s  but the clever young people who worked for these bodies did not even bother to acknowledge receipt of the Campaign's submissions. Now everyone is having to pay for this wilful ignorance.

There are also rumours that Stamp Duty Land Tax will be deferred or suspended. When this tax was at the so-called "consultation stage", the Campaign made a submission arguing that the tax should become a charge reflecting just the administration cost to the Land Registry, combined with the introduction of LVT in the form advocated by the Campaign. The Campaign's submission was of course ignored. With the volume of property sales in sharp decline, the government's revenue from this source is being hit, and it will further suffer as prices dive below the threshold figures. Meantime, rents are holding up quite nicely and a tax based on rental values would have continued to yield a reliable stream of revenue.

Putting out a rumour is the worst possible thing the government could have done as the entire housing market will now go into suspense pending a decision. Is there no limit to its incompetence?
 

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