Thomas Bridge 09 August 2016

Councils and campaigners at odds over future of property taxes

Councils and campaigners at odds over future of property taxes image

Councils have called for greater powers over tax to fund infrastructure, despite a pressure group calling for the ‘abolition’ of stamp duty.

New research by the Taxpayer’s Alliance found property tax levels grew 2.8% to £66.8bn in 2015, with stamp duty climbing £1.5bn, business rates increasing by £300m and council tax receipts falling by £100m.

It said business rates, council tax and stamp duty were ‘weighing down’ the economy, blocking first-time buyers from accessing the housing ladder and hindering business growth.

However, councils warned UK-wide growth and jobs could be at risk unless local government received a greater proportion of tax income.

South East England Councils (SEEC) has pushed the National Infrastructure Commission for help in ‘persuading the Treasury’ to hand local authorities a greater proportion of business rates income and property taxes for spending on infrastructure.

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