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Monday, March 30, 2015

Extra council tax band more popular than mansion tax, poll finds

People would rather the government introduce a higher rate council tax band on the most expensive homes than a mansion tax, a survey by the HomeOwners Alliance has found.

This supports FairHomeTax's independent evidence from the CEBR that clearly showed that adding 3 bands to existing council tax valuations will generate more than Labour's punitive Mansion Tax. Full details can be seen at http://www.fairhometax.uk/FairCouncilTax_CEBR.html  

The HomeOwners Alliance survey, which gathered popular opinion on the parties’ housing policy pledges, polled over 2,000 adults and found that seven in ten (70%) supported an additional top band of council tax on homes over £2m – proposed by the Liberal Democrats – compared to just one third who support a mansion tax – proposed by Labour.  

The survey also found that an increase to the inheritance tax threshold was more popular than a mansion tax, with 58% supporting it.

Paula Higgins, one of the co-founders of the HomeOwners Alliance, said homeowners were pragmatic about increasing taxes on higher value properties.

‘Homeowners are generally keen to be able to pass on their family homes to their children, which is why there is support for an increase in the inheritance tax threshold,’ Higgins said.

But with an acute shortage of housing, the priority for the public was to ensure that those who wanted to own the roof over their head were not at disadvantaged by foreign buyers and those who have second homes, Higgins said.

A policy put forward for Londoners by Major Boris Johnson to make developers market homes in the UK before marketing them overseas received support from 80% of the respondents.

To see the full article and poll results go to: http://www.publicfinance.co.uk/news/2015/03/extra-council-tax-band-more-popular-than-mansion-tax-poll-finds/

posted by FairHomeTax Team  30.03.15 17:02

Sunday, February 15, 2015

Labour's mansion tax: Charging foreign buyers and empty houses more would raise same cash for less pain. Targeted taxation could raise more than £6 billion next parliament without hitting cash-strapped families, according to new report
Labour could generate the same amount of money by ditching the mansion tax and instead raising levies on empty houses, foreign buyers and buy-to-let landlords, a new CEBR report has found.

Analysis by the Centre for Economics and Business Research (CEBR) found targeted taxation could raise more than £6 billion next parliament without hitting cash-strapped families. The findings call into question whether Labour’s plans to make people in houses worth more than £2 million pay more is the fairest way to boost revenues through property tax.

Howard Cox (pictured with Ed Balls), who runs centre-right Fair Homes Tax campaign and commissioned the research, said Labour was pursuing the policy for ideological reasons and called on them to reconsider. He criticised Ed Balls, the shadow chancellor, for refusing to consider ditching the mansion tax after the pair met for face-to-face discussions about the findings and other tax changes.

Labour proposes to charge people with a house worth between £2 million and £3 million an extra £250 a month – the equivalent of £3,000 more every year.

The CEBR research found that a similar amount could be raised by more targeted taxation. Charging foreign buyers a higher rate of stamp duty would increase tax revenues by a total of £3.3 billion by 2019-20, the report found. Allowing councils to charge a 100 per cent council tax premium on properties empty for longer than six months would generate an additional £1.3 billion by the end of next parliament while scrapping tax reliefs for buy-to-let landlords would add another £1.5 billion.

Mr Cox met with Mr Balls in Westminster (see photo) on Wednesday to discuss the findings and other tax issues but was left frustrated that the shadow chancellor showed no sign of changing his mansion tax plans.

"After meeting with the shadow chancellor and showing to him a haversack of independently produced evidence from the CEBR it's clear that the Labour Party leadership is not considering other fairer and considerably more effective family home tax raising approaches,” Mr Cox said. "They remain focused on taxing the nation's wealth creators and in many cases asset comfortable but income poor pensioners,” he added, saying the move was "ideologically driven” and reflects the "politics of envy”.

Sunday Telegraph 15th Feb 2015

posted by FairHomeTax Team  15.02.15 18:57

Friday, January 23, 2015


  • FairHomeTax UK report by the CEBR recommends a fairer and more progressive approach to property taxation
  • Works by improving existing mechanisms, like council tax, to raise billions for NHS and local services while directly benefitting nurses and public sector workers
  • Demonstrates Labour’s Mansion Tax is flawed and an ideologically driven piece of electioneering that won’t raise the £1.2 billion Miliband promises to
  • Shows that politicians from all parties are ignoring the elephant in the room – council tax – which hasn’t been reviewed to reflect changing property prices in over 20 years
  • Sets out path to a more equitable home taxation system, doing more to improve the NHS and local services, faster.
FairHomeTax UK, an independent campaigning group concerned with fairer property taxation in Britain, has commissioned the highly respected economics organisation, the Centre for Business Research (CEBR), to investigate Labour’s Mansion Tax proposals ahead of the 2015 general election. The research, published in two parts, reaches its conclusions today and the findings will come as a blow to Ed
Miliband and Labour’s much-vaunted Mansion Tax proposals. Although a populist policy, Labour’s proposed Mansion Tax is punitive and limited in its scope. It is difficult and costly to enforce, introduces more red tape and bureaucracy and is ideologically driven rather than focussed on improving public services. The first part of the CEBR report, published in December 2014, found that:

  • Labour’s Plans will kill house sales
  • Stamp Duty will fall by £2bn
  • Elderly homeowners will be hardest hit
  • Mansion Tax won’t raise the promised £1.2bn for NHS
  • Homeowners will be able to easily avoid paying Mansion Tax
  • Mansion Tax is unworkable and unsustainable 
In the latest addition to the report, published today, the CEBR and FairHomeTax sets out an alternative and more
equitable approach to property taxation by reviewing the Council Tax system. Its findings revel that:

  • The addition of three Council Tax bands above H could contribute £4.7 billion additional revenue to tax receipts in 2015-16.
  • This more than trebles the amount Labour claims Mansion Tax will raise for the NHS
  • A total income from this revised common sense approach to the Treasury and local authorities would be £25.6 billion by 2019-20
  • AND It will only cost £257 million to implement 
Like the Mansion Tax, this reformed system would shift part of the tax burden to occupants of very high value properties and those that have benefited from above average house price growth. BUT, given that the average cost of moving up one band is £350 annually, the reform is unlikely to create substantial market distortions.Under the existing system of council taxation, a resident of a property in Band A, B, and C pays on average £998, £1,165, and £1,331 respectively in annual council tax. Under the reformed system residents of Band A properties would pay no council tax, while those in Bands B and C would pay significantly reduced amounts.

As well as injecting significant funds into the NHS, this implementation of a fairer and long overdue council tax review will benefit the very people Labour claims to support - nurses, teachers and other public sector workers. The CEBR reports reveals that in key regions of the UK, Bands A, B and C houses are disproportionately occupied by public sector workers who will directly benefit from the proposes revision. A fairer system of council taxation would also help health workers indirectly by eliminating or reducing the council tax burden in the bottom three bands.Those who can pay a little more will benefit from better local services, instead of their punitive immoral unworkable Mansion Tax idea.

Howard Cox, well known Public Affairs Campaigner and Founder of FairHomeTax.uk said: "For too long politicians from all parties have ignored the proverbial elephant in the room: Council Tax. Despite massive changes in the value of British houses, it’s a quarter of a century since the council tax system was looked at. Our FairHomeTax.uk report demonstrates that a revised system - with those living in the most valuable houses paying more - would yield billions for local services and the NHS, while reducing the council tax burden for those living in the least expensive properties. This fairer, more progressive approach to property taxation compared with the proposed Mansion Tax would provide a shot in the arm to local services and the NHS through existing channels, rather than adding more red tape. FairHomeTax's report reveals that Labour's proposed Mansion Tax on the top 0.2% of houses, which could cost tens of millions to administer and would be difficult to enforce, is a far less effective revenue raiser compared with a sensible reassessment of the council tax bands. It exposes Labour’s ideologically driven and punitive mansion tax as a shameless piece of electioneering whose principle could be applied more practically, for less money in a way that directly helps the majority of working people. Parliament should debate the proposals by FairHomeTax and the findings of the CEBR as a matter of urgency before the General Election.” 

posted by FairHomeTax Team  23.01.15 12:55





For more details email contact@fairhometax.uk Tel: 07515421611   -  FairHomeTax, 1 Rammell Mews, Cranbrook, Kent TN17 3BQ

The Campaign for Fairer Tax on UK Homes is run by Howard Cox, the founder of the FairFuelUK Campaign.  Howard Cox is a staunch campaigner for stimulating the economy, motivating consumers and fighting unfair taxation. FairFuelUK, is the Nationally Recognised Award Winning Campaign fighting for lower petrol & diesel prices and is widely accredited with stopping £30 billion of road user taxes being levied on businesses & public in this Parliament. Without FairFuelUK prices at the pumps would be over £1.60 per litre. Its time for all Parties to recognise that the family home is not the tax cash cow for their spending aspirations. A property taxation reform is long overdue.