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Friday, 23 February, 2007
LibDems' green tax plans are off colour

Guildford Liberal Democrats want to have their cake and eat it – attempting to make political capital locally from their so-called ‘green tax switch’ policy, but then ducking detailed scrutiny by making personal jibes at anyone who questions it (Surrey Advertiser, 16 February). Let’s raise the standard of debate.

• In the small print of their tax plan, only £8 billion of the £20 billion of the gross tax rises are from green taxes.  The majority of the tax increases are from higher taxes placed on enterprise and income. This is hardly a ‘green switch’.

• Although the national basic rate would be reduced by 2 per cent, local councils would levy a local income tax of between 4 – 4½ pence in the pound to both the basic and higher rates of income tax , compounded by cutting back income tax relief on private pensions. Income taxes would rise not fall. Working families across Surrey would pay a lot more.

• The policy advocates a long-term move to a 1 per cent house price tax . A similar tax is being piloted in Ulster by the Government under direct rule, and was endorsed by a review for the Lib-Lab Executive in Scotland. Only Conservatives have opposed it. Such a tax would mean a yearly bill of £3,450 on an average Guildford property compared to an average council tax of £1,282.

The LibDem tax plan is a fig leaf – it looks small and green, but it can’t really cover their embarrassment – since it actually shifts the burden of tax onto people who have worked hard and saved. Using the political spin of ‘greenery’ to sell highly redistributive tax plans undermines the environmental cause, and contributes to increasing public scepticism over the merits of any green taxation.

Cllr Sheridan Westlake,
Borough councillor for Merrow

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Friday, 09 February, 2007
The small print of Liberal Democrat tax plans

There is a strong case to promote green growth by shifting the tax burden away from families and personal taxation onto environmental pollution (Surrey Advertiser, 19 January 2007). But the Liberal Democrats’ latest tax proposals are not so attractive if you read the small print of their policy documents.

Their plans for a new local income tax of between 4% to 4.5% on both the basic and higher rates of taxation would hammer hard-working families across Guildford. As Guildford’s former Liberal Democrat MP may recall remarking after the general election, “local income tax was a real sticking point…young professionals such as two teachers living together struggling to pay the mortgage really didn’t like the policy.”

Other unwelcome measures in their tax plans include cutting tax relief on personal pensions, VAT on new homes, and moving (in the long-term) to an annual house price tax – as already being introduced in Northern Ireland by the Labour Government from April. Yes, we need measures to protect the environment and tackle climate change, and the balance of local government funding certainly needs reform. But hammering middle England – young and old – with tax hikes like these is not the answer.

 

Cllr Sheridan Westlake


 

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