Blame ministers for AstraZeneca U-turn
Losing AstraZeneca's £450m investment in Liverpool would have been impossible in this ministerial structure that was very close to the industry. The present ministerial decision-making structure is clearly incoherent.David OwenLondon
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The Guardian
10 hours ago
- The Guardian
How would potential new property tax differ from stamp duty and council tax system?
The government is considering a new national property tax as the first step towards a radical shake-up of stamp duty and council tax. The discussions taking place at the Treasury – revealed by the Guardian on Monday – have already prompted much debate and, perhaps inevitably, led to an outcry in some quarters. Here we consider how the current system works and how it could change. Two things, essentially. First, sources said Treasury officials were initially examining a potential new tax that would replace stamp duty on owner-occupied homes. It would be paid by homeowners on properties worth more than £500,000 when they sold them. The amount paid would be determined by a property's value. Such a change would be a big deal because under the current system, stamp duty is paid by buyers, not sellers. It could be a bigger concern for some people living in London, the south-east and other areas where property prices are particularly high. Second, officials are also said to be studying whether, after a national tax was brought in, a local property tax could then replace council tax in the medium term. While a new national property tax could in theory be implemented during this parliament, overhauling council tax would take longer and would almost certainly require Labour to win a second term in 2029. You must pay stamp duty land tax (SDLT) – to give it its full name – if you buy a property over a certain price in England and Northern Ireland. There are different approaches to some land taxes in Wales and Scotland. Stamp duty rates vary depending on whether someone is a first-time buyer, and are banded in steps upward depending on the value of the property. They can also vary as a result of stamp duty 'holidays' benefiting some buyers that are brought in from time to time. The rates changed in April this year, and (first-time buyers excepted) where this is the only residential property someone will own, the tax is now zero up to £125,000, then 2% on the portion from £125,001 to £250,000, and 5% on the portion from £250,001 to £925,000. There are then two more bands so that it tops out at 12% on the portion above £1.5m. However, economists and others have long criticised stamp duty as outdated – SDLT is based on a tax first introduced in England in 1694 – and arguably the biggest barrier to moving house. Paul Johnson, until recently the director of the Institute for Fiscal Studies, has said that of all the taxes levied at present, stamp duty on homes 'has a pretty good claim to be the most damaging and pernicious of the lot'. He added: 'The more often you move, the more tax you pay. It gums up the housing market and, by extension, the labour market.' The average stamp duty bill has risen to £9,935, according to research issued earlier this year by Coventry building society. It was £6,235 in 2014, according to its data. But of course, individual amounts vary hugely. It is estimated that the majority of property transactions – about 60%-plus – are affected by stamp duty. It has been suggested it would be paid by owner-occupiers on houses worth more than £500,000 when they sell up. The rate would be set by central government. This tax would not replace stamp duty on second homes. On the face of it, and based on current property prices, a £500,000 threshold would mean that the majority of people selling their home would escape the new tax. The average price of a home in the UK is £272,664 or £298,237, depending on whether you believe Nationwide's or Halifax's latest data. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion But tough luck if you are in London: according to the Halifax's latest data, the average house price in the capital is £539,000. The Guardian reported that the new tax (if it happens) would only affect about a fifth of property sales. Stephen Perkins, the managing director at the home loans broker Yellow Brick Mortgages, said: 'Financially, unless the property tax is ridiculously high, this will raise less money than stamp duty, as fewer homes will be affected.' He claimed: 'Initially, sellers will just build this into asking prices, sending [property] prices up.' Sources said Treasury officials were, in part, drawing on the findings of a 48-page report from the centre-right thinktank Onward, which was published in August last year. This put forward the idea of a 0.54% tax, with a 0.278% supplement on the portion of any value that exceeded £1m, which it said 'would raise the same amount as stamp duty'. The tax would be levied only on properties valued at £500,000-plus, and only on the portion of value above £500,000. The thinktank proposed that someone who had only recently bought their house and paid a substantial sum in stamp duty would not be asked to pay this tax in addition. Council tax has been described as 'a deeply broken system', and in its report, Onward said the way it worked meant 'an average home in Blackpool contributes more to the public purse than a mansion in Kensington'. Council tax bands in England are still set using property values from 1 April 1991, ranging from band A, for homes worth up to £40,000, to band H, for those worth £320,001 and above. The system of funding local government is different across the UK. The average band D council tax set by local authorities in England for 2025-26 was £2,280 – an increase of £109, or 5%, on the 2024-25 figure of £2,171. The idea of a new local annual property levy to replace council tax was also proposed by Onward. That plan – for a 'local proportional property tax' – would result in the owners, rather than the residents, of a property worth up to £500,000 paying varying rates of tax dependent on the value of the home. They would pay a minimum of £800 a year. A rate of 0.44% 'would raise the same amount of revenue as council tax', said the report. The TaxPayers' Alliance was quoted as saying: 'If these reports are true, then taxpayers are facing a wealth tax in all but name.' Craig Fish, the director at the mortgage broker Lodestone, said he was concerned that such a shake-up would stop people selling or moving home, especially in high-value areas. 'The result is less income overall,' he said.
Daily Mail
15 hours ago
- Daily Mail
Rachel Reeves' radical new property tax: What is it and will YOU pay more?
Rachel Reeves is mulling a shake-up of property taxes which could potentially see those selling homes over £500,000 hit with a new levy. The Chancellor is said to have asked Treasury officials to look at replacing the current stamp duty system to shift the burden from home buyers to home sellers. It wants to take advantage of the huge rise in house prices in recent decades, to make more money for the public purse. It was reported by the Guardian that the 'proportional property tax' could hit those selling homes worth more than half a million pounds. However, Treasury sources have since denied this in a Telegraph report. There are also reports of changes to council tax, which could be replaced with a new local property tax, paid only by homeowners, in the longer term. We explain how property tax works in Britain today, and what could change. What property taxes do people pay now? Stamp duty is the main property tax paid by home owners in Britain. It is paid by home buyers when they purchase a new home. Buyers pay nothing on properties that cost less than £125,000. On the amount from £125,001 to £250,000, they will pay two per cent. On the portion from £250,001 to £925,000, they pay five per cent. On the portion from £925,001 to £1.5 million they pay 10 per cent, and on anything above that, 12 per cent. First-time buyers pay nothing on properties up to £300,000, then the same rates thereafter. On a £250,000 property purchase a buyer would pay £2,500, and on a £450,000 home, £12,500. The proposed new system, if adopted, would mean fewer people paid property taxes. About three in five home sales pay stamp duty at the moment. What's wrong with stamp duty? Critics say stamp duty prevents people from moving home. This, they say, means that people cannot always access the kind of property they need, at the stage of life they need it. For example, if older people are put off downsizing, there are fewer larger homes available for young families. Moving the burden from the buyer to the seller would particularly help first-time buyers above the stamp duty threshold, as they wouldn't be left with a tax bill when getting on the housing ladder. Influential organisations such as the International Monetary Fund and the Institute for Fiscal Studies have previously called for stamp duty to be overhauled. Simon Gerrard, chairman of Martyn Gerrard Estate Agents says: 'The existing stamp duty regime is unfit for purpose and has had a chilling effect on the housing market. 'This new tax would be paid by the seller, rather than the buyer which means that it won't be the same tax on aspiration that stamp duty currently is.' The negative impact of stamp duty on the housing market was illustrated by the stamp duty holiday during the pandemic, when property market activity boomed. What could change? Under a radical plan said to be under consideration, owners of houses worth more than £500,000 could have to pay a 'proportional property tax' based on the value of their properties when they sell up. These taxes could also be paid annually, rather than in one go. What would people pay? How much people would pay in tax as a proportion of their property's value has not been revealed. However, the Treasury officials considering the tax changes are said to have been considering the arguments made in a 2024 report by Tim Leunig of the think tank, Onward. In it, he said a tax, paid annually, of 0.54 per cent of the value of properties over £500,000, with a 0.278 per cent supplement on values over £1million, would raise the same amount as stamp duty. It is probable that Rachel Reeves would want to make more revenue than stamp duty currently generates, though. Leunig's paper suggested the tax would not be retrospectively applied on properties on which stamp duty has already been paid, and would rise annually by inflation. What would it mean for the housing market? Experts say that setting the threshold at £500,000, if it happens, could distort the housing market because homes below that price could see a surge in popularity. Gerrard says: 'It's clear that the Government is motivated by a desire to raise revenues and I'm concerned that this new tax is going to be punishingly high. 'If that's the case, you're going to see a ceiling at the £500,000 threshold for that band of the market, as people avoid falling under the regime, and then a significant jump in values with nothing in between. 'Prices above £500,000 will skyrocket as sellers account for the losses caused by the tax, that used to be paid by the buyer.' If the £500,000-plus threshold was in place, it could disproportionately affect families in London and the South East. 'The housing market is far higher in London, which means any family home will be impacted by this new tax. If prices surge higher because of this new regime, how will anyone in the capital start a family?' says Gerrard. When will this happen? It is unclear. The next fiscal announcement from the Government will be the autumn Budget will happen in October or November, but these policies will take far longer to implement. The Guardian's report suggested the changes could come in by the end of the decade. What about council tax? The reports have also suggested that, over the longer term, a local property tax could also be introduced to replace council tax. This would be paid by home owners, based on the value of their properties. Leunig's report proposes charging the tax on house values up to £500,000 with a minimum annual payment of £800. The rate would be set by local authorities. A rate of 0.44 per cent, he says, would raise the same amount of revenue as council tax. It would be paid under his proposal by the owner of the property, not the resident, which would be good news for those who rent their homes. Separate council tax reforms are already under way, as Deputy Prime Minister Angela Rayner is mulling an overhaul of the council tax system to allocate more money to deprived areas. What could the new tax mean when you buy your next home? House price Local property tax (per annum) (0.44%) National property tax (0.54% on £500k-£1m) National property tax 0.81% on £1m+) Total annual tax under new scheme £100,000 £800 £0 £0 £800 £200,000 £880 £0 £0 £880 £300,000 £1,320 £0 £0 £1,320 £400,000 £1,760 £0 £0 £1,760 £500,000 £2,200 £0 £0 £2,200 £600,000 £2,200 £540 £0 £2,740 £700,000 £2,200 £1,080 £0 £3,280 £800,000 £2,200 £1,620 £0 £3,820 £900,000 £2,200 £2,160 £0 £4,360 £1,000,000 £2,200 £2,700 £0 £4,900 £1,500,000 £2,200 £2,700 £4,050 £8,950 £2,000,000 £2,200 £2,700 £8,100 £13,000 How much does stamp duty raise for the public purse? According to the Office for Budget Responsibility, property transaction taxes, largely stamp duty, were forecast to raise £15billion in the financial year 2024-25. It is expected to rise steadily to reach £26.5billion in 2029-30. Council tax raised £37million in the fiscal year 2023-24. What does the Treasury say? A spokesman told the Daily Mail: 'As set out in the plan for change, the best way to strengthen public finances is by growing the economy - which is our focus. 'Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8billion and cut borrowing by £3.4billion. 'We are committed to keeping taxes for working people as low as possible, which is why at last autumn's Budget, we protected working people's payslips and kept our promise not to raise the basic, higher or additional rates of income tax, employee national insurance, or VAT.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
The Guardian
a day ago
- The Guardian
Trump's move to sanitize US history gets little support with national park visitors
As part of his administration's war on 'woke', Donald Trump has asked the American public to report anything 'negative' about Americans in US national parks. But the public has largely refused to support a world view without inconvenient historical facts, comments submitted from national parks and seen by the Guardian show. Notices have been erected at every National Park Service (NPS) site, which spans 433 national parks, monuments and battlefields, following an order from May entitled 'Restoring Truth and Sanity to American History', issued by Trump's department of the interior. The president had demanded a crackdown on any material that 'inappropriately disparages Americans'. The signs ask visitors to report any damage to parks as well as, via QR code, to identify 'any signs or other information that are negative about either past or living Americans or that fail to emphasize the beauty, grandeur, and abundance of landscapes and other natural features'. But a trove of nearly 500 comments relating to the signs submitted across the US by the public in June and July, seen by the Guardian, show that visitors have mostly been reluctant to demand the removal of park materials about the darker chapters of America's past, such as slavery or the mistreatment of Native tribes. 'Are we such weak, fragile people that we can't view the full length and breadth of our history?' one visitor to Muir Woods in California wrote in July after a sign called 'history under construction' was taken down. 'Are we so afraid that we have to hide factual history from the telling of our past? Oh, please!!' Another visitor to Cumberland Gap national historical park in Kentucky wrote in June that 'the staff that work at this park are among the kindest, most knowledgeable people you will find anywhere'. They added: 'I hate that this administration feels that history that may depict the United States in a bad light should be covered up.' Many of the comments praise park rangers or call for more information on issues such as the Indigenous American experience or the climate crisis. Some complain about the decision to remove the 'T' from LGBT at New York's Stonewall national monument, to exclude transgender people, while some visitors demanded the unvarnished truth be told at Manzanar, a California facility where Japanese-Americans were interned during the second world war. 'Sanitizing or downplaying this history does a disservice to those who lived through it,' one Manzanar tourist wrote. 'Whoever authorized this sign should be fired,' added another visitor about the new signage. 'History belongs to all people, and any attempt to rewrite or gloss over even our darkest days should not be tolerated.' The QR code comments, a snapshot of public opinions that are filtered before being stored by the NPS, come at a tumultuous time for the park service. Nearly a quarter of NPS staff have departed the agency since Trump became president, leading to overstretched and potentially dangerous conditions at storied sites often referred to as 'America's best idea', such as Yellowstone, the Everglades and the Statue of Liberty. 'Americans have demonstrated they have a deep love affair with national parks and what we've seen from these comments is that the public has said this is an insulting and misguided effort,' said John Garder, a senior director at the National Parks Conservation Association. 'Rangers shouldn't be intimidated to not talk about slavery and other things that have happened in America's past. It's outrageous and the American public have been deeply disturbed by it.' However, not all of the submitted comments from what some park staff call 'snitch signs' will be used to direct the revamp of park signage. Of the comments seen by the Guardian, fewer than 40 were 'flagged for review' by the park service and of those, fewer than 10 were indicated to be definitely used as part of the response to the interior department order. This small selection of comments mostly aligns with the administration's perspective. One complains about 'revisionist history based in woke religion' at Muir Woods, another criticizes 'fashionable leftist jargon' and a third, from a visitor to Washington's Rock Creek park, is upset that materials on Francis Newlands, a US senator around the time of the first world war, 'disparage him as a white supremacist for holding what were common views at the time'. 'They want this virtue-washed version of history and they are trying to drive a wedge between us and the public,' said one senior NPS employee, who did not want to be named for fear for retribution. 'Every time there is a comment asking for more information on Indigenous people, it won't be acknowledged. If there's someone who says they are terribly offended by a sign, it will be flagged and sent for review.' The NPS staffer, part of the 'resistance rangers' movement within the park service comprising more than 1,000 off-duty rangers that has its own podcast in which they contribute anonymously, said that the composition of comments has recently become more pro-Trump since the park service noticed the public were mostly supportive of signs. 'It seems like an orchestrated effort was made, a lot of the comments appear the same or AI-generated,' said the employee. The Guardian has seen no evidence that the public responses have been distorted by the administration in this way. 'Overwhelmingly, we have a positive response from the public every day. People don't want this. Every day I have people whisper to me, 'we love the parks, we want to help.'' The administration is expected to act soon to take down signs it deems inappropriate. On Monday, it began a separate month-long process to review and remove other materials in national park sites, such as books and posters found in gift shops. 'We have to review every single pamphlet, pin and magnet,' said one NPS employee. 'There are going to be hundreds of items that are going to be removed.' A superintendent of a history-based park said there has been very little guidance on how to judge materials as problematic. 'It's on the park staff, who are already underresourced, to figure out what to censor, which is really troubling,' they said. 'I've tried to not delegate any of this because I don't want to make staff do things that go against their values,' the superintendent said of the signs. 'This is a way to stop us talking about difficult topics and tie our hands behind our backs. Overwhelmingly, the public aren't buying it. They don't want this. When the department set this up I don't think they expected so many of the comments to be positive, it backfired a bit on them.' The purge is part of a wider push by the Trump administration to bend American historical, cultural and scientific life to fit its ideological imperatives. Military bases and statues will again bear the name of Confederate generals, climate science reports will be re-edited to potentially include discredited, fringe views while current and planned exhibitions at the Smithsonian Institution, the world's largest museum and research complex, will be reviewed to 'assess tone, historical framing and alignment with American ideals'. An NPS spokesperson said by 18 September signs found to be 'inconsistent' with the Department of Interior order would be removed, covered up or reinstated at a later date. 'The National Park Service has received several substantive comments to date from across the country complimenting park programs or services, noting maintenance issues, or flagging potential inaccuracies or distortions of information out of context,' the spokesperson said. 'In implementing the order, the goal is to foster honest, respectful storytelling that educates visitors while honoring the complexity of our nation's shared journey and park staff are only sent actionable comments related to that goal.'
