In my opinion that is of course...Stamp duty needs to be rethought entirely. It damages labor mobility and discourages pensioners from downsizing, reducing the supply of family housing among other ills. A much fairer and efficient way to collect some of the currently untaxed and unearned housing riches is via unavoidable annual taxes such as council tax. Unlike equivalent taxes in many of our peer cities around the world, this is currently capped at the equivalent of about £1 million in today’s values. At a time when people earning as little as £10,001 incur a marginal tax rate of 32 per cent in income tax and national insurance, I find it morally questionable to leave annual property taxes untouched.
Is this politically difficult? Most Londoners rent and have no realistic chance of living in a multi-million-pound house. The middle classes have nothing to fear from higher property taxes and everything to fear from further increases on their earning power. The asset-rich, cash-poor who do not wish to downsize can be accommodated by a roll up, which even over 30 years will only equate to the last five years’ unearned capital gain. All the better if extra council tax is kept in London: a big boost to local democracy.
Joe Momberg, Young People’s Party
Thanks to MW for input
