Mid Sussex MP, Nicholas Soames, expressed concern this week at the Liberal Democrats’ announcement at their Party Conference of plans for a new house price tax – on top of the existing Liberal Democrat proposals for a new local income tax.

Their new house price tax – to be levied at 0.5 per cent on a home’s value every year – would be slapped on all higher-value homes, but they have admitted that the Government’s Valuation Office Agency would be instructed to undertake annual inspections of all detached homes across Mid Sussex to assess whether or not they should pay the new tax. Regardless of whether homes are caught by the tax, residents will have a nosy state inspector snooping on their gardens, bathrooms and bedrooms. There are 11,915 homes across Mid Sussex in council tax bands F,G,H which would be hit.

All this comes as the Labour Government is gearing up for a wholesale council tax revaluation across all flats and houses in England. They are developing a Big Brother property database to photograph and record people’s patios, parking spaces and the scenic views they enjoy. Wales has already had a revaluation which resulted in soaring bills for family homes.

In addition, Liberal Democrats have confirmed their plans for a new local income tax of 3.5 per cent on the basic and higher rates of income tax. This would hammer working families and younger workers in shared houses. A working family in Mid Sussex both on average working incomes for Mid Sussex would pay £558 a year more under local income tax.

Mr Soames said: “Liberal Democrats’ plans for a new house price tax mean there is now a clear choice for voters at the next general election. Both Labour and Liberal Democrats have now signed up to intrusive tax revaluations of people’s homes to hike up bills. Local residents of all backgrounds face a double whammy of higher income tax and punitive property taxes.

“Only Conservatives are opposed to these tax-raising plans – and have vowed to stop any house tax revaluation and abolish council tax inspectors’ rights of entry into Sussex homes.

-ENDS-

LIBERAL DEMOCRAT LOCAL TAX PLANS

Liberal Democrats have reaffirmed their support for a local income tax to replace council tax, but also called for a new house price tax on top on high-value homes. Annual tax revaluations would take place by the Government’s tax inspectors, the Valuation Office Agency. As they have said:

“Under the system we propose which is really a development of the council tax system at the top end, it would be the Valuation Agency which would determine who belongs in which category - they do that at the moment. [Asked how often that would happen] Presumably there would be an annual change... most countries have property taxes... and there are agencies already in place to do it” (BBC Newsnight, Vince Cable interview with Jeremy Paxman, 21 September 2009).

“The party would continue to campaign for a local income tax” (Press Association, 22 September 2009).