Peter Lilley, MP for Hitchin and Harpenden, today warned that local residents across Hertfordshire faced the threat of VAT on new homes and higher council tax bills, under proposals put forward by the Liberal Democrats. On 26 February, Liberal Democrats published their ?Alternative Budget? in Westminster, outlining plans for a barrage of new taxes.
Liberal Democrat policies include placing VAT on newly built houses ? this would add ?15,538 onto cost of the average new house in the South East. 10 per cent of all house sales in the South East are new build, and 16 per cent of all detached houses sold are new. They also propose higher council taxes via new council tax bands. 7,480 households in St Albans and Harpenden and 3,112 households across North Hertfordshire in Bands G or H could face a potential hike equivalent to 50 per cent of the Band D rate under their proposals.
Peter Lilley remarked:
“It is becoming increasingly difficult for young people and working families to get on to the housing ladder, and I am very concerned that Liberal Democrats are lobbying the Government to impose more taxes on Hertfordshire residents.
“Taxes on new homes will do nothing to stop over-development or the wrong houses being built in the wrong places; it will just act as an incentive for more higher-profit executive homes being built rather than more affordable housing. And the last thing Hertfordshire needs when council tax bills are soaring are Liberal Democrats calling for punishing new council tax bands and tax hikes of up to 50 per cent.?