General election live: Tories challenge Labour to join them in ruling out council tax reform

It comes after the Institute for Fiscal Studies raised concerns about at the honesty of the debate about taxation during the campaign

Good morning. The government raises more than £1 trillion in tax every year, and more than half of that money comes from just three sources: income tax, national insurance and VAT. The Conservatives and Labour have both promised not to raise the rates of any of those taxes (although, with VAT, Labour was initially reluctant to give a cast-iron pledge, implying Rachel Reeves, the shadow chancellor, wanted, at least a bit, to keep her options open.)

But there are plenty of other taxes available to a chancellor, and it seems the Conservative party now plans to spend the remaining four weeks until polling day challenging Labour to rule out raising any of them. Today Jeremy Hunt, the chancellor, has written an article for the Daily Telegraph in which he promises that his party won’t increase stamp duty, that it will continue to ensure main homes are exempt from capital gains tax, and that it won’t hold a council tax revaluation, or increase the number of council tax bands. The final promise is particular significant because the current council tax arrangements for England are egregiously unfair, and mainstream economists argue (eg here and here) the case for reform is overwhelming.

That is why today we are announcing the family home tax guarantee.

This guarantee is a commitment not to increase the number of council tax bands, undertake an expensive council tax revaluation, or cut council tax discounts. It is a commitment to maintain private residence relief, so that people’s main homes are protected from capital gains tax. And it is a commitment not to increase the rate or level of stamp duty.

We will not be raising taxes on working people … These are more desperate claims from Rishi Sunak who lied to the British people before and is lying to them again.

Continue reading…

Please follow and like us: