Council Tax, again.

It is clear that by stealth the Government is preparing vast data files on dwellings in England, as they did in other parts of the UK previously. The result is that council tax paid will increasingly depend on our house, - on improvements made, its condition and its location.

What is abundantly clear, from other parts of the UK where it has been already introduced, is that there is an element of stealth tax here, - that extra tax paid by some overwhelmingly exceeds the reductions enjoyed by others.

What is of concern is the basis. There is presumably a large egalitarian motive here. If so, it fails to achieve its purpose.

1) It takes no account of the household ability to pay. A family with a couple and 3 grown up children all working could add up paying the same as the hard-pressed widow next door in an identical house. Of course, this will be recognised and a bureaucratic means test will be added. People who are capital rich but income poor will bear a greater burden, whatever their means.

2) It takes no account of benefit from the community received by individual tax payers. So long as someone lives in a small house or flat, they will pay less.

3) It takes no account of preferences. If I decide to improve my house, as my main hobby, I shall be penalised. Even if I decide to maintain my house, the same applies. If I decide to change my life style, by buying a flat here, by selling my house here and buying a house abroad, I shall pay less tax.

The trouble is, in essence, that many years ago rates were held to be a charge and not a tax, and therefore could be completely unrelated to need or benefit received. It may be a simple solution, except in the future, but it has so many anomalies.

It fails the test of being fair, except by introducing all sorts of exceptions and special adjustments. For this reason, I assume, the LibDems are advocating local income taxes. This really a non-starter, however much it appeals to egalitarians, because it will inevitably become national and bureaucratic, non-transparent and remote.

There are a few complications to it, as there are to the LibDem income tax proposal because people work in one area and live in another, present VAT but the fairest tax would seem to be to replace the present council tax with a local sales tax, - those who spend most will contribute most, it can be set and changed vary easily in response to local needs and it is transparent in all purchases.

Why have the egalitarians set their faces against the sales tax? Are they concerned that Brussels will intervene? If so, perhaps it's time we challenged them!