New SNP, Green rates relief cut is fair and yet another progressive move to the left of Labour

You have to laugh at these two Herald headlines (above and below) today:

SNP, Green government rates grab will ‘penalise’ Scots

and this opening text:

Owners of historic and business properties and even vacant land are facing a new rates bombshell with relief on empty buildings and development land about to be axed overnight.

The first many will know about it will be the “heavy sound of the rates invoice on the mat” and the move threatens growth and investment as business owners with empty buildings and vacant land who currently don’t pay anything will face a bill of many thousands of pounds from the start of April.

First, what is being ‘grabbed?’ Well, nothing; it’s tax relief at other ‘Scots’ expense being withdrawn from folk who already have a bit of wealth – that’s fair, progressive you might say and the kind of thing Scottish Labour will first support then be told to pretend isn’t a thing by Starmer.

Second ‘Scots’ being penalised? Well, I suppose some might feel so but just how many are we talking about here and are they numerous or deserving enough for a headline like that?

Third, progressive? Well yes, this is just one more example of the SNP in government doing what it can, within the limits imposed by Westminster, to make this a fairer, more equal country of the kind we know, from looking at much of northern Europe, is better all round in terms of crime levels, mental health, productivity, happiness and many other measures.

The other examples?

The Child Payment, the reduced taxation on the poorest, the lower rents and greater access to affordable housing, the compensation for the bedroom tax, the free prescriptions, the bus passes for the under 22s, and numerous other smaller initiatives, pushing child poverty here ever lower than elsewhere the UK, and all of them beyond Scottish Labour’s reach.

Just my opinion?

The IFS?

In recent years, powers to change the tax and benefit system have been devolved to the Scottish Government. These powers have been used to make the system overall more progressive, with more generous benefits boosting the incomes of poorer households, and higher taxes reducing the incomes of richer households.

https://ifs.org.uk/publications/analysis-scottish-tax-and-benefit-reforms#:~:text=In%20recent%20years%2C%20powers%20to,the%20incomes%20of%20richer%20households.

The JRF?

The full rollout of the Scottish Child Payment is a watershed moment for tackling poverty in Scotland, and the rest of the UK should take notice. At £1,300 per child, per year it will be a welcome boost to family budgets that are stretched to breaking point already. No child should live in poverty so there is clearly more to do but the Scottish Government should be commended for prioritising spend on this vital measure at this time. But this is not just a cost of living crisis measure, it is an enduring investment in our children.

https://www.jrf.org.uk/news/scottish-child-payment-extension-a-watershed-already-showing-that-poverty-can-be-tackled-with

This SNP/Green grab is a ‘wealth tax.’ Why are wealth taxes a great idea?

Wealth inequality in the UK is even greater than income inequality, with the richest 10% of households owning 40% of all household wealth. There is a growing consensus that we need to tax wealth and capital better. Taxes on wealth could raise tens of billions of pounds annually, our research found

https://www.taxjustice.uk/taxing-wealth.html

When the IFS or the JRF, as they have often done, cast doubt on Scotland, the MSM and the opposition parties love to hear it so they have to just accept the above, don’t they?

12 thoughts on “New SNP, Green rates relief cut is fair and yet another progressive move to the left of Labour”

  1. For how long now have we listened to the tories in particular mouthing about how the SG should use the tax powers they already have to raise cash. Yet that same moaning bunch will be the first to beef about this particular move. Just wait for it. How many tory MSPs have benefited from this tax break? We’ll soon be hearing from them.

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  2. “…. . tax relief on empty buildings and development land about to be axed overnight.…..”
    In that part sentence we get to the heart of then issue. Buildings are kept empty and land is left for years undeveloped to create an artificial shortage. By doing this the property developers rig the market. By reducing supply at a time of high demand for housing and other premises, the price rises steeply and profits are increased greatly. This is classic rentier behaviour – adding nothing or very little to the economy and general welfare but extracting profit from it.

    By taxing these empty buildings and undeveloped land profits are reduced and there is a likelihood that some of these things will be sold and become part of the general economy.

    The SG ought to go further and make these taxes increase the longer the buildings and land are unused. This will increase supply, prices will fall and housing, for example, will become more affordable, because the land on which it is built has fallen in price and it is the artificially inflated price of land which has created the housing shortage and made rents so high.

    Alasdair Macdonald

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    1. Spot on

      Land and property investment has long been a hedge against inflation, but there is ample evidence in modern times of orchestrated manipulation of the market to the detriment of prospective home buyers, at no penalty to the investor sitting on the asset.

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  3. A pity we are not in the same league as Hunt who thinks this is not a big salary.

    Anger as Jeremy Hunt says £100,000 is ‘not a huge salary’

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    2. To be fair though, if you read the full quote (saying he’s talking about living in Surrey and having a mortgage), he’s not altogether wrong. It won’t be a lot to them. 

      So, if they can’t afford it, I’m sure they’ll be prepared to take the advice given to the rest of us:

      • get a better paid job
      • or another one to supplement their income
      • stop buying new phones and electronics etc
      • buy an old car – or, better yet, use public transport
      • don’t buy non-basic brand food (or, indeed any food at all)
      • switch the heating off, especially in winter when bills will rocket!
      • stop going on holidays they plainly can’t afford
      • maybe even… MOVE to somewhere cheaper

      Of course, the schools, healthcare and public services may not be as good as in their current area – or even available. The area will perhaps be scruffier, it’ll certainly be criminally over-priced. And there may not even be good properties available. But they can always buy a doer-upper. Or rent! Well, if there’s anywhere to rent… Why do they need to own property at all when there are so many nice landlords?

      If only they knew of a chancellor who was interested in alleviating the woes of The Poor, like them…

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    1. If you read the article it is the opposite of what you took from it….they are CUTTING (lessening) the relief on wealthy land and property owners on their vacant land and property!!! If the msm ever reported this (which they won’t) then I am 100% sure that the Scottish people would agree wholeheartedly with the SNP.

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  6. / I don’t understand why people who own vacant or unused properties should not be taxed on their waste of resources.

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  7. A lot of buildings and land are purchased by wealthy people who just hang on to them even though they are empty , they wait until some other person or business wants it to develop it then they sell at a huge profit .At present they pay little or no council tax on these properties but i think they should be taxed because they are investments.As for being historic ? i am 68 years of age and i would say i am historic , i get zero council tax relief , what has historic got to with it ? nothing ! I am glad to see this happening and yes the english newspapers such as the herald and the scotsman will squeel and have a hissy fit , let them , give them more of it .

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  8. Its all a property scam , i was shocked to find out that Dundee port was sold by forth ports and is now owned by the Canadian teachers pension fund , this pension fund will extract extract extract , there will be zero investment , a perfect example of why Thatchers privatisation programme wrecked everything we depend on for our day to day living , housing , education , health service , transport bus and rail etcetc

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