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Mansion Tax £49M Yield In Wandsworth

Wednesday, October 29, 2014

GMB Welcome Wandsworth Council’s Estimate That Labour’s Mansion Tax Proposals Would Raise £49 Million Per Year In Borough For NHS

The wealthy can afford to pay more towards to increasing costs of our health service and the mansion tax proposal is popular with the public says GMB

GMB welcomed the estimate by Wandsworth Council that around 4,900 properties in the Borough would be impacted by Labours Mansion Tax proposals and the yield would exceed £49 million per year. See notes to editors for copy of question and reply by leader of the council on 15th October.

Paul Maloney, GMB Regional Secretary, said “GMB welcome this estimate that around 4,900 properties in Wandsworth would be impacted and the yield would exceed £49 million per year. It is clear from just one borough that Labour’s mansion tax proposals can raise a lot of money.

It is right that those with the broadest shoulders should now contribute towards the increasing costs of NHS.

The wealthy in Wandsworth can pay more. Band D council tax in Wandsworth is £681.77 while the average band D council tax for local authorities in England is £1,468. Band D next door in Kingston-upon-Thames is £1,678.65 and in Richmond-upon-Thames it is £1,586.39.

This mansion tax proposal is popular with the public. The mansion tax brings us back to where we would have been had the Tories not abolished domestic rates that was linked to property values.

According to Colbert “The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing.” We can expect some initial hissing from the wealthy and their Tory friends. We do not need it from would be Labour candidates for London Mayor.”

End

Contact: Paul Maloney GMB Regional Secretary on07801 343 839 or Michelle Gordon GMB Press Officer on 07866 369259 or Gary Doolan GMB Political Officer on 07852 182357 or GMB Press Office on 07921 289 880.

Notes to editors

The question was asked at the Wandsworth Council Meeting on Wednesday 15th October 2014 by a Conservative councillor, Nick Cuff:

Mansion Tax: Question asked by Councillor Cuff of the Leader of the Council

Could the Leader quantify the effect that Labour’s Mansion Tax will have in Wandsworth. How many home owners would be caught by this tax? Does he agree that this is essentially a tax on London?

Answer:

Mr Miliband forgets the deficit in his conference speech, but manages to remember the announcement of a new tax!

It is difficult to get accurate figures for the impact of the Mansion tax on Wandsworth residents, but based on evidence published by Zoopla, it is estimated that around 4,900 properties in the Borough would be impacted and the yield would exceed £49 million per year. This is more than the total yield of the Council element of the Council Tax in the year. Based on the same data, the top ten authorities are all London boroughs and they would yield over 80% of the estimated total take of this pernicious proposed tax.

I don’t see how this can be described as anything other than a tax on London. It also seems likely to me that the property value threshold could creep lower in order to maintain the revenue a slippery slope that results in more and more London homes falling into the tax trap.

Many of those affected by this £10,000 per year tax will be households whose homes have appreciated in value over recent decades. Glenda Jackson MP put it perfectly recently when she said that the Mansion Tax would ‘impact disastrously on people who are asset rich but cash poor’. One in six Labour MPs in London, including several Mayoral hopefuls, have been very quick to distance themselves from this new tax.

What the party opposite also fails to realise is that the Mansion Tax will not only impact those who have limited ability to pay, but will effectively limit the income from other property taxes including Stamp Duty Land Tax (SDLT), which is payable on the purchase or transfer of property and is currently at 7% on residential purchases above £2 million, or 15% where purchased by corporate bodies, as property prices are reduced to avoid the tax and the take from SDLT drops accordingly.

http://ww3.wandsworth.gov.uk/moderngov/documents/s34463/Council%20Questions%20Answers.pdf

 

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