Friday, August 23News For London

A former labour frontbencher finds a solution for the “Generation rent”

 Tristram Hunt MP says Britain’s tax system is flawed. It leads to widening the gaps of inequality and unfairness.

used under creative commons license https://en.wikipedia.org/wiki/Tristram_Hunt
Tristram Hunt.Used under creative commons license https://en.wikipedia.org/wiki/Tristram_Hunt

Mr Hunt spoke at the Fabian society  on Monday. His speech was mainly focused on tackling Inequality in modern Britain.

He said that a “bolder and braver redistribution,” policy is a must. The current tax system lacks reason. It taxes work and enterprise too much while tax “unearned wealth” very little.

He mentioned that the Tories’ inheritance tax cut for the wealthiest estates should be revised. A tax cut for just 6% of households could be better spent on affordable housing and young apprenticeships.

“Property wealth is one of the biggest sources of inequality in this country, but for too long we have been content to put up with the regressive, out of date, and inefficient council tax system,” he said.

The council tax is defined as the tax on domestic property collected by local councils. Each council use it to pay for local services such as schools, roads and street lighting.

According to IPPR, an annual 0.5% tax upon the value of each property  would completely cover the cost of replacing the council tax.

He proposed that a replacement of the council tax with a system based on the value of properties, the higher the value, the more the taxes. He called it “a Progressive Property Value” tax.

“What is more if we raised it on owners, not occupiers, it would take ‘generation rent’ completely out of local taxes altogether,” He said.

Adding that if  properties owned by trusts and foreign individuals was included, it could even release money for social investment.

He mentioned that the coming economy is a one of self-employment and micro-businesses which could be either liberating or exploitative.

The Labour party should work with the trade unions on ways to manage in such conditions.

He concluded that a policy which focuses on decent housing, mental health, support for parents and technical education should be the main focus of policy makers to defy inequality.

The speech was received by social media in different ways