The Housing Commission, chaired by former Liberal Democratic leader Sir Vince Cable, said national insurance that increases rental income would be “a tax on workers.”
His comments came after the first meeting of the Independent Housing Policy and Delivery Oversight Committee, the former and the Minister of Commerce chairs.
The committee was established in June and supported by the Family Building Association, will monitor the performance of the government’s commitment to build 1.5 million new homes by the end of this council.
The cable comments are as follows A series of property tax increases The summer leaked to the media and it is understood that Prime Minister Rachel Reeves is considering tucking a £20 billion black hole into public finance when he proposed the Labor Party budget on November 26.
One of them is a proposal to apply for national insurance from landlords’ rental income, and the Ministry of Finance hopes to raise £20 billion.
But Cable believes: “The imposition of national insurance tax on landlords is most likely to result in higher rents for tenants.
“In fact, taxes on workers are increasing.”
The Ministry of Finance also briefly introduced other property tax reforms currently under study.
These cover new property taxes on selling homes worth over £500,000 and are planned to replace the Council taxes for unspecified phased periods.
Cable believes that cases of wholesale reform of the entire property tax system “cannot be ignored” but should be consulted rather than breaking out in public next month.
The former politician said: “There is no doubt that the housing market is not operating effectively and property tax is an important factor.
“Cases of major reforms in the entire property tax system from stamp duty to estate tax to council tax and VAT are almost unjudgmentable.”
“Recent speculations about the fragmented budget changes are for revenue purposes, and if they occur, it will be a step in the wrong direction,” Cable added.
“The change in the necessary scale requires the careful consideration, at least the white paper and extensive consultation to avoid unintended consequences for this fundamental aspect of society.”
Cable was the party leader from 2017 to 2019 and was the business secretary of the LIB DEM and the conservative coalition government from 2010 to 2015.
