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Local Taxation

Part of the debate – in the House of Commons at 6:09 pm on 4th July 2005.

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Photo of David Howarth David Howarth Shadow Minister, Office of the Deputy Prime Minister 6:09 pm, 4th July 2005

No, I am sorry. I do not have much time left. I might give way at the end, if I have some time.

Mention was made of shared houses, which are often very large. The comparison must be made not with the average band of council tax, but with the actual band within which those houses fall. That is likely to be at the higher end, possibly even in band H. Even a single-earner household in band H can find itself not losing from local income tax on an income of almost £75,000 a year.

Another point that was raised quite frequently related to tax avoidance. As we tried to make clear in the debate, our view is that second homes should be treated as businesses. They would therefore fall to be taxed under our land value taxation proposal. Our view is that that also meets the worries about foreign-owned properties.