Portillo comes out for Local Income Tax

There’s a rather remarkable turnaround from former top Tory Michael Portillo in his column in today’s Sunday Times:

Labour – and the Conservatives – have manoeuvred themselves into the stance of opposing taxation (at local level at least) based on ability to pay. It is not an easy argument to sustain. [The SNP’s Alex] Salmond has effortlessly cornered his opponents and could be just a few moves from checkmate. … His proposal cuts away at Labour support because it is redistributive towards poorer voters. However, the Tories need to watch out, too, because it would also help those widows in large houses, the core supporters for whom they invented the poll tax 20 years ago.

The debate may well be confined to Scotland and to how it will shape attitudes to independence there – but it should not be. If we altered the way local authorities raise their money, we would change the nature of our country for the better.

I became minister for local government just after the Thatcher government introduced the poll tax to England, the year after the Scots had started to pay it. I defended it then and later under Major I worked to scrap it and replace it. Having thought hard about local government finance, I am convinced that an income tax supplement must be part of any equitable local tax system. I admit that earners would pay more and high earners much more, but greater social justice is not a powerful argument against it.

More importantly, raising the money in that way would enable local government to grow in scope and importance. By comparison with almost every country I know, we suffer from chronically weak local government and from central government that is too powerful. Decisions are made remotely, national policies are imposed although they are inappropriate in most localities and terrible amounts of public money get wasted.

You can read the whole article here – and perhaps marvel at the way Mr Portillo manages to write 800 words on Local Income Tax without once mentioning that it’s been Liberal Democrat policy for the past two decades.

Read more by .
This entry was posted in Local government and News.
Advert

3 Comments

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert

Recent Comments

  • cim
    I would have thought one of the biggest barriers to buildings getting built is the supply of materials and the availability of competent staff to turn those mat...
  • Pawel Urbanski
    This subject needs far more attention and more noise from Liberal Democrats, particularly in London. Rob’s direction is right, and the report is useful. But w...
  • Peter Davies
    London is a special case. There wasn't enough undeveloped land without planning permission sold to get an accurate figure. What matters is what developers think...
  • Tim
    @peter - Land prices have not been rising, at least in London, for ages. The idea that developers string out negotiations is hard to sustain in the context of t...
  • Jim Webber
    I spent 17 years in London. Nothing speaks louder about the problems affecting this country than the closure of key bridges in our country's capital. The closur...