Thursday 3 April 2003

The return of Old Labour

Jack McConnell wants to raise council taxes:
LABOUR is planning to go ahead with a shake-up of council tax property bands that would almost certainly bring bigger bills for people living in more expensive houses.
This would be achieved by extending the top-band threshold from its current £212,000 level:
In the Scottish cities, there is now a larger number of properties worth well in excess of that figure and it is likely to be argued that there should be extra bandings at the top end.

House prices in the capital have more than doubled since 1991, which means the £212,000 threshold for the top band is the equivalent of around £465,000 today.

One reason for increased property prices is the historically low level of interest rates that have at the moment. These may well rise shortly as a result of Gordon Brown's ever increasing budget deficit which will probably necessitate more government borrowing. If house prices fall back, as many expect, would council tax valuations be adjusted downward? I don't think so. They just want your money.