You are currently browsing the tag archive for the ‘government’ tag.

The Chancellor should look again at the nation’s Stamp Duty thresholds, an archaic tax structure which is distorting the housing market, says RICS as part of its 2014 Pre-Budget statement.

The existing ‘slab’ Stamp Duty system taxes a percentage of a home’s purchase price according to which value bracket it happens to fall into. For instance, a buyer purchasing a property for under £250,000 would pay one percent of the price in tax, while a home sold for just one pound more would generate a tax bill of three percent. This means that many buyers are financially unable to venture above the threshold and vendors may have to price their home below what they may otherwise have sold it for. RICS believes that the government should consider a fairer, marginal rate to replace the current structure which sees few homes come onto the market at between £250,00 and £275,000 whether or not they are worth that price.

The government should also consider adapting Help to Buy to suit individual regions’ needs. Sixty percent of RICS members surveyed believe that adjusting the scheme on a regional basis would make the market more sustainable. Furthermore, half of those who are in favour believe that the funding should be limited purely to first time buyers. RICS would like to see the government reassess the scheme with a view to providing the relevant help according to an individual region’s needs.

Garden cities could prove a good means of boosting the supply of homes on the market. However, these cities need to be located in places where people are able and willing to live, close to sources of employment and the houses need to be affordable housing. To make the garden cities a reality the government needs to publish its outline prospectus to test the market by giving potential developers, communities and investors clarity and certainty.

While much progress has been made in recent years regarding empty property rates, unoccupied shops and offices that require refurbishment before being re-let are still subject to prohibitive business rate tax. This situation acts as a huge disincentive for landlords to ensure their premises are brought up to quality and environmental standards. RICS would like the government to consider a rate exemption period for these premises which would also result in more work for smaller, local construction firms, while helping the commercial property sector meet its April 2018 target of making buildings more environmentally sustainable.

Jeremy Blackburn, RICS Head of UK Policy, said:

“This is a very important Budget for the Chancellor and one which will shape the economy in the run-up to the general election. A major area of concern in the property sector, at present, is the current Stamp Duty system which is both out-of-date and distorts the market by taxing buyers disproportionately high amounts should they go just one pound over the pre-set thresholds. A more intelligent, modern way of taxing property sales is needed for a market which is changing at a rate of knots.

“We would also like to see George Osborne provide more detail as to exactly what is meant by new garden cities and precisely how they would benefit communities and the economy. Taxing landlords who renovate their empty shops and offices is also on burden on the economy and discourages owners from taking their premises out of circulation to meet environmental standards.”

Residents in Medway will still have the cheapest council tax in Kent after councillors approved a budget for 2014/2015.

Councillors last night voted for a 1.99 per cent increase in council tax to combat an unprecedented cut in funding to the council from the government that will see the authority get just £52million this year – a huge 9.6 per cent less than last year.

Despite this, Medway Council has managed to protect frontline services from cuts in the budget for the forthcoming year. We are also freezing increases on car parking charges until 2017 and will provide £200,000 to improve play areas.

Council tax funds more than 140 services for almost 270,000 residents in Medway. These include important services such as weekly bin and recycling collections, adult social care, educational provision and children’s social services, as well as looking after Medway’s roads and parks.

The increase in this year’s council tax equates to a £22.77 increase per year for an average Band D property – the equivalent of 44p a week.

Medway currently has the seventh lowest council tax of all mainland unitary authorities and is, on average, over £100 below the average combined council tax for Kent County Council and Kent district councils.

Funding in the budget will include:

• £2million for highways improvements
• An extra to £450,000 to fix potholes caused by the adverse weather
• Doubling of free Christmas parking for five years
• £200,000 for improvements to children’s play areas
• £30,000 to fund apprenticeships on the Medway Queen
• £100,000 to fight plans for the Thames Estuary airport – a campaign that has all-party support
• An extension on freeze to car parking increases until 2017

Unlike many other authorities, our 16 libraries and 19 children’s centres will face no threat of closure – as the council is committed to keeping these important local resources open.

In fact, the council has also recently provided new community hub style libraries – which also provide a one-stop facility for information on and booking of other council services – for Gillingham, Rochester and Chatham. Strood and Twydall will see new community hubs open in 2015.

Medway Council has only increased its council tax twice in the past four years, and has done this only to secure a balanced budget.

Cllr Alan Jarrett, Deputy Leader and Portfolio Holder for Finance, said: “This has been an extremely tough budget for us against a backdrop of cuts and almost impossible deadlines imposed on us to produce it.

“The small council tax rise is unavoidable if we are to maintain our vital services. “But there are a number of very positive announcements in this budget and we are proud to have avoided cuts to our frontline services.

“While every authority has been hit by Government funding reductions, Medway has been particularly hard hit and we expect that by 2015/16, we will have seen our funding from central government cut by 48 per cent over five years.”

The councils total budget for 2014/15 will be £331 million compared to £348.5 million the year before.

All residents will receive notification in the mail over the next few weeks detailing their council tax and the new charge will start in April.

The Electoral Commission has called on the Government to change the law so that voters are never again refused the opportunity to cast their vote, as happened at some polling stations during the last general election. More

Residents will be able to call Medway Council at the evening and weekends to arrange more services than ever before under new changes being brought in.

And people will be able to pop into the council’s five town centre libraries for advice on a much wider array of council issues, and even pay bills. More

%d bloggers like this: