Wednesday, 24 March 2010

Millionaires in Mayfair pay less council tax than average homeowners in Launceston

Local Lib Dem MP Dan Rogerson has told me of a statistic (originally unearthed by Richard Whitehouse of the Cornish Guardian) that is genuinely shocking.

Millionaires in Mayfair mansions pay less in council tax than average homeowners in Launceston.

Thats goes to show just how unfair the council tax system introduced by the Conservatives is. It urgently needs replacing with a system based on ability to pay.

The figures behind the statistic are these:

  • In Mayfair, which is part of Westminster Council, where some mansions sell for tens of millions of pounds, the top rate of council tax (Band H) is £1375.24 a year.
  • In Launceston, the Band D council tax rate is £1509.24 a year. Band D properties are the 'average homes' and are used by the Government when comparing council tax rates.

Of course, there aren't too many million pound plus homes in Launceston and the average house price here is a lot lower than Mayfair. But wages here are a tiny fraction of those in Mayfair. North Cornwall has been identified as an area with one of the highest proportion of low earning households in the UK.

The Lib Dems have long campaigned against the Council Tax which was introduced by the Conservatives to replace the even more unfair poll tax. We need a local taxation system which is based on the ability to pay and government funding for councils which really reflects the needs of the local community. With the Conservatives you will get none of these changes.

Note: I originally posted that Dan had unearthed the stat. I'm told by others that this was in the public domain before thanks to Richard Whitehouse of the Cornish Guardian and so I have corrected the post accordingly. Nevertheless, the shocking nature of the statistic remains.


Anonymous said...

So Dan came up with this did he?Funny ,I read this in the paper last week and it didnt mention him.
Could you provide the evidence he came up with the original story please?

Alex Folkes said...

My sincere apologies if this was posted before by someone else. I got the stat from Dan. The shocking nature of it remains nonetheless