LABOUR TAX A “WRECKING BALL” TO HOUSING MARKET

15% FALL IN HOUSE PRICES EXPECTED

The SNP today slammed Labour’s plans for a property poll tax as a danger to Scotland’s housing market.

Research from the previous administration’s review of Local Government Finance estimated that “the reintroduction of a local property tax could reduce house prices in the long run perhaps by 15% on average."

A 15% fall in values would wipe nearly £22,000 (£21832.95) off the average house price in Scotland.

Labour’s plan to hit Scottish households and wreck Scotland’s housing market comes only days after figures from the Royal Institute of Chartered Surveyors showed house prices in Scotland may be beginning to recover with a majority of surveyors now expecting the market to improve and mortgage surveys showing the market appears to be stabilising.

SNP MSP and Chief Whip Brian Adam said;

“Labour is taking a wrecking ball to Scotland’s housing market.

“Not content with increasing household tax bills by nearly £500 and taxing people for home improvements Labour now want to cut the value of people’s homes by 15%.

“When Scotland’s housing market is showing signs of recovery this is the wrong policy at the wrong time. Labour’s tax plans are simply irresponsible.

“Any homeowner will want to make improvements to their property, so why should they be penalised? For many people homes are investments in their children’s future. Now Labour wants to take £22,000 off their investment.

“If these plans were ever to be implemented we would see pensioners facing enormous bills and losing money on their homes.

“And with the prospect of regular revaluations this situation would only get worse.
“Labour’s irresponsible proposals are a threat to household budgets and a threat to the housing market in the middle of the recession. This is midsummer madness from Iain Gray and Andy Kerr that will horrify people across Scotland.”

LABOUR GO BACK TO THE FUTURE WITH PLAN TO PENALISE HOMEOWNERS

RIDICULOUS PROPOSALS WOULD HIT PENSIONERS AND HOMEOWNERS

Commenting on reports in the Times that Labour is to revise the Burt Report proposal for a 1% tax on homeowners as a new form of property tax SNP MSP and Chief Whip Brian Adam warned that Labour’s tax would penalise homeowners and pensioners.

When the proposal came out in 2006 sources close to Labour First Minister Jack McConnell responded to the proposal saying “"There is no way that Labour ministers will support a 1% homes tax."

The chief of COSLA, Labour Councillor Pat Watters responded at the time saying it was "the worst of all possibilities"

SNP Chief Whip Brian Adam said;

“Labour has gone back to the future with this proposal.

“Labour’s policy cupboard is so bare they have been forced into rehashing a three year old proposal rejected by Jack McConnell’s administration.

“After all Iain Gray’s talk of new and radical proposals they have retreated to a policy rubbished by the last Labour Executive.

“Andy Kerr was part of that administration –this idea was wrong then and is wrong now.

“Pensioners and homeowners across Scotland will be horrified by this plan.

“If these plans were ever to be implemented we would see pensioners facing enormous bills. Scotland’s pensioners have worked hard to pay for their homes, why should they be penalised for changes in the property market.

“And any homeowner will want to make improvements to their property. Why should homeowners be penalised for improving property they own? This is a ridiculous suggestion.

“To penalise people who make their homes more energy efficient would be utterly wrong at a time when we are working to improve our housing stock and tackle climate change.

“It seems Labour are so desperate to show they have a policy they’ve picked the first one they could find – even it will damage Scottish households.

“As for revaluation, proposed by Labour in Glasgow – everyone knows that means tax rises. When properties were revalued in Cardiff 64% of people saw their council tax bills rocket.

“Once again local taxes have Labour all over the shop. In contrast the SNP Scottish Government has delivered a council tax freeze for all Scottish households, helping them through the recession.

“It is clear from today’s proposals that it is only the SNP who can be trusted to scrap the unfair council tax and introduce fair taxation based on ability to pay.”