Broken Manifesto promises

by Appalled Landlord

7:16 AM, 11th March 2017
About 2 years ago

Broken Manifesto promises

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Broken Manifesto promises

The 2015 Conservative manifesto included the following pledge: “We will commit to no increases in VAT, National Insurance contributions or Income Tax”.  To see a copy click here

Not everyone read it at the time, but very few people could have avoided seeing David Cameron on television on 29 April 2015 pledging that there would be no increase in income tax: click here

The Guardian printed the related press release that morning: click here

It stated: “David Cameron will pledge to introduce a new law within the first 100 days of a Conservative government to prevent any rises in income tax, VAT or national insurance in the next parliament.” And “In a keynote speech, designed to be one of the highlights in a week of Tory campaigning on the economy, the prime minister will say on Wednesday: “This is the clearest choice on the economy for a generation. And beyond the plain facts, it also comes down to gut instinct. When you’re standing in the polling booth, ask yourself: on the things that matter in your life, who do you really trust?

“When it comes to your tax bill: do you trust the people who taxed you to the hilt when they were in power and still haven’t come clean about the taxes they want to increase next time round? Or do you trust the Conservatives, who have cut income taxes for 26 million people and who will cut your taxes again next time?””

These were excellent questions.

This week Philip Hammond broke the promise by announcing an increase in NI contributions for the self-employed.  This resulted in a media onslaught and several Tory MP’s spoke out against the breach of promise which would increase the NI deduction by 1% of someone’s income.  The Daily Telegraph’s deputy editor Allister Heath described the move as an unforced error.

However, there has been a deafening silence from MP’s over the first breach of promise – which was announced a mere 10 weeks after Cameron made it on TV.

In July 2015 George Osborne announced Clause/Section 24, restricting the deductibility of mortgage interest for landlords who bought properties in their own names.  This means that many will pay tax on a fictitious amount of profit with effect from April 2017, increasing their Income Tax.

The result of the NI increase for a self-employed person earning £50,000, according to Patrick Collinson’s video in the first article above, will be an increase of £500 a year, or 1%

Whereas Section 24 will more than triple the tax of one landlord that I know, and leave her without enough to live on, as described on page 12 of Dr Beck’s report: click here

She will not be entitled to any benefits though because of her fictitious income!

She will have to pay an extra 60% of her income in tax because her tax rate will go up to 83%. This increase will be 60 times as big as that resulting from the NI increase, but Tory MP’s have kept silent about that, despite the complaints they have received from taxpayers for the last 20 months.

Dr Beck’s report describes how, in order to be able to pay the extra tax and prevent bankruptcy, the landlords with the most properties have to increase the rents they charge, often for the first time in years.  As tenants on capped benefits cannot afford the increases, they are being evicted and made homeless. Councils have to put them in “temporary” accommodation at greater cost.

Homelessness is going to increase enormously due to the breach of promise that is Section 24. It will be an unforced disaster, not just in terms of the human misery of the extra homeless, but in the economic lunacy of paying more to accommodate them in hotels and B&B’s.

But where is the media uproar?  Where are the objections from Tory MP’s?

And where are the objections from Opposition MP’s for that matter?



Comments

Neil Patterson

7:19 AM, 11th March 2017
About 2 years ago

The last point about opposition is very telling as this is what happens without the government being held to account by Parliament. Now the people and press must.

Old Mrs Landlord

8:08 AM, 11th March 2017
About 2 years ago

First they came for the landlords but no politicians, journalists or housing charities spoke out, then they came for the self employed,,,,,,,,,

Gary Dully

23:42 PM, 12th March 2017
About 2 years ago

There was an article suggesting that the campaign for Axe The Tenant Tax, were about to rip into Shelter over this issue, I'm looking forward to reading that.

Gromit

11:45 AM, 13th March 2017
About 2 years ago

The Tories have not just broken their pledges on tax, but something far more significant - "the trust of the British people".

I hope they will be punished for this at the ballot box, (unfortunately as things stand today there isn't a viable alternative). But I will not be voting Conservative again.

NW Landlord

11:51 AM, 13th March 2017
About 2 years ago

Still baffles me how that can get away with tax rates over 80% it's madness and going to be a disaster. We all know how hard it is to turn a profit now Let alone 2020 landlords simply won't have the money to pay it I can't see it getting to 2020 it will unravel far earlier as I suspect people will struggle when the 25% tax bill arrives

Tobias Nightingale

12:33 PM, 13th March 2017
About 2 years ago

I'm not saying this is going to happen. But they claim the self employed is not a broken pledge because its equalising ni. So with that in mind, I can imagine putting vat on food would in their logic not be breaking a pledge either.

Gromit

13:20 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "NW Landlord" at "13/03/2017 - 11:51":

It is going to unravel slowly depending upon how much interest an individual Landlord pays - everyone is different.

I believe this was deliberate to:
a). avoid an en masse sell-off resulting a house price drop, mass evictions and probably riots on the streets.
b). allow Landlords to gradually increase rents.

The Treasury/Chancellor knows this is a massive tax hike, why else would they spread it over 4 years.

Luke P

13:21 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Barry Fitzpatrick" at "13/03/2017 - 13:20":

Could you not bring yourself to give UKIP a shot, Barry?

Gromit

13:29 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Luke P" at "13/03/2017 - 13:21":

I am unimpressed by their lack of housing policy especially regarding the PRS. Also unimpressed with their general lack of response when I was making enquiries as to what their housing policy was - it took about 4 months to come back with "we have no policy".

They seem totally rudderless since Farage stood down, Nuttall is running around like a headless chicken, and seems to lack integrity.

Given the state of the Tories, Labour, & LibDems; UKIP is probably the best of a bad bunch BUT not having a policy on the PRS could give Landlords a chance to formulate policy by lobbying the group party groups. This presupposes that the leadership listens to its grassroots. If just 1 or 2 vocal Landlords joined their local UKIP group we could shape their PRS policy.

Luke P

13:34 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Barry Fitzpatrick" at "13/03/2017 - 13:29":

Because of their lack of housing policy, I am currently arranging a high-level UKIP meeting to strongly suggest they come up with something sensible and remind them there are 2 million landlords who are disillusioned with the Conservative party whose potential votes could be snapped up with relative ease, as I feel this is an industry and base as yet unrecognised by them. They certainly can't be any worse than the incumbents or the alternative offerings.

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