Two news stories currently running show the difficulty with tax reform or anything which shifts resources.
The first is the changes to School funding where the “losers” are protesting and the winners are keeping quiet.
The second is the business rates revaluation due to come in to force in April 2017. This is a supposedly tax neutral exercise with businesses principally in the North benefitting and losing in the South. Not only has the Government been criticised by the losers out of this system, notably pubs and shops in more prosperous areas, but the winners include internet companies who are already under fire for not paying enough business taxes at present.
Tax reform appears an easy way to lose support which is why politicians are naturally cautious about even sensible changes. So, if you ever wondered why your Council Tax is based on a valuation that is over 25 years old, today’s headline will provide a strong clue!
