One of the negative effects of a forced coalition is having a limited pool of talent to draw upon.
Just look at the LibDem end of the coalition...what a bunch of nonentities!
An ex National Parks PR man, Danny Alexander running our money and the very mediocre, ballroom dancing economist, 'Doctor' Vince Cable as Business Secretary.
The Dame watched Vince, in front of the Commons Committee, trying to justify giving away Royal Mail 'on the cheap'....it was just squirm making...
A real couple of buffoons in charge of the economy!
No wonder their idea of a Mansion Tax has attracted scorn from civil servants.
The Dame watched Vince, in front of the Commons Committee, trying to justify giving away Royal Mail 'on the cheap'....it was just squirm making...
A real couple of buffoons in charge of the economy!
No wonder their idea of a Mansion Tax has attracted scorn from civil servants.
Even Tessa Jowell says it just won't work.
The Dame's attention was drawn to an excellent piece in Conservative Home by Nick Paget-Brown. It's well worth reading...good stuff, Nick.
PAGET-BROWN IS RIGHT ON THIS |
Now with elections appearing on the horizon, we find Labour and the
Lib-Dems both promoting a Mansion Tax. The two versions are pretty much the
same: an annual one per cent charge on the value of a home above £2 million.
The only real difference is that Labour promises to hypothecate the extra
revenue in order to re-create the 10p tax rate they abolished in 2008.
In publicity promoting his tax, Vince Cable indicates that it is aimed
at “some of the world’s wealthiest people who own property in the UK worth
millions…”.
According to Ed Balls, once part of a Government that proclaimed itself
relaxed about people getting “filthy rich”, the tax will mean “that foreign
investors who buy up property in London to make a profit will finally pay a
proper tax contribution to our country.”
In the UK some 55,000 homes are said to be worth more than £2m, seven
out of ten of those are in London and just shy of 12,000 are in my own borough
of Kensington and Chelsea.
Who owns those homes? Is it those popular hate-figures –
international bankers, oligarchs and corporate raiders – that Mr Balls would
have us believe?
Well, no doubt some of them are owned by such people but that is very far
from the full story. Our council tax database only goes back as far as
1999 but it tells us that of the properties that might be caught by the tax –
the ones in Council Tax bands G and H – 7,000 of them have been in the same
ownership the entire time. And it’s a safe bet that very many of those
homes were bought or inherited many years prior to 1999.
Kensington and Chelsea was still a desirable area back in the eighties
and nineties of course, but house prices really were remarkably different.
The average price of a semi these days is an unbelievable £4.7 million.
In 1995 it was £505,000. An average terrace is today valued at
£3.3million. In 1995, it would have cost £423,000. Back then the
merely well off could buy in Kensington and Chelsea, today you need to be one
of the super rich.
But what gets forgotten by the advocates of a mansion tax is that there
is a large chunk of home owners in our Borough who are by no means “filthy
rich” or part of the global plutocracy.. Many are retired. Several
are elderly. Many are on fixed or relatively modest incomes. Increasing numbers
live alone. They purchased their home long ago from post-tax income. What
will be the impact of the Mansion Tax on them? Well if they are living in
that average Royal Borough semi, Ed Balls and Vince Cable will be expecting
them to find £27,000 a year in mansion tax. That’s about £50,000 of
pre-tax income and there’s no mansion involved – just a lifetime home.
The inevitable result of that can only be that much of our stable older
population will be driven from London and from the homes in which they raised
their children thereby exacerbating the already skewed demographics of inner
London.
And
who will be the long-term beneficiaries of such an exodus? Step forward
the very people the Lib Dems and Labour claim to have in their sights: those
super-rich overseas investors, for whom the mansion tax will be a mere
bagatelle.