Roof Tax (Hansard, 20 February 1990)

§ Mr. Allan Stewart
To ask the Secretary of State for Scotland if he will undertake an assessment of the effects on the elderly of a roof tax; and if he will make a statement.

§ Lord James Douglas-Hamilton
Following the introduction of the community charge, it was estimated that 85 per cent. of single pensioners in Scotland would be better off than under domestic rates. The replacement of the community charge with a roof tax would mean a return to the anomalies of domestic rates including those of a single pensioner having to pay as much tax as a pensioner couple or even a family of working adults living in identical housing—anomalies removed by the community charge.

§ Mr. Allan Stewart
To ask the Secretary of State for Scotland if he will undertake an assessment of the implications of the introduction of a roof tax on the Eastwood constituency; and if he will make a statement.

§ Lord James Douglas-Hamilton
The proposed roof tax would reintroduce anomalies and unfairness associated with domestic rates and would seriously reduce the democratic accountability of local government both in Eastwood and in the whole of Scotland.

§ Mr. Allan Stewart
To ask the Secretary of State for Scotland what consideration he has given to the economic consequences of the introduction of a roof tax in Scotland; and if he will make a statement.

§ Lord James Douglas-Hamilton
The introduction of such a tax would increase the cost of occupying houses and therefore reduce the effective demand for housing and the value of domestic property. Apart from the effects this would have on individuals it would tend to reduce demand on the construction and related industries.
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§ Mr. Allen Stewart
To ask the Secretary of State for Scotland what consideration he has given to the effects on the construction industry of the introduction of a roof tax; and if he will make a statement.

§ Lord James Douglas-Hamilton
The proposed roof tax would increase the costs of occupying property and reduce the effective demand for housing with consequential reduction in demand for investment in housing. This would in turn lead to lower output by the construction industry on housing.

§ Mr. Allen Stewart
To ask the Secretary of State for Scotland what consideration he has given to the effects on the do-it-yourself industry of the introduction of a roof tax; and if he will make a statement.

§ Lord James Douglas-Hamilton
As a roof tax would relate people's tax bills to the value of their property, it would act as a disincentive to people to make improvements to their homes which increased their value and could therefore reduce the demand for do-it-yourself goods and services.

§ Mr. Allen Stewart
To ask the Secretary of State for Scotland what consideration he has given to the implications of a roof tax for council tenants who have exercised their right to buy.

§ Lord James Douglas-Hamilton
Council tenants who have exercised their right to buy and been eligible for a discount on their house must be expected to have their liability to pay the roof tax assessed on the full value of the property.

§ Mr. Allen Stewart
To ask the Secretary of State for Scotland what is his estimate of the number of adults who would be required to pay a roof tax in Scotland.

§ Lord James Douglas-Hamilton
The introduction of a roof tax would be a return to a system similar to domestic rates. About 1.8 million people paid domestic rates, compared with 3.9 million who are liable for the community charge. Actual numbers paying would depend on the extent of exemptions or reliefs given but must be expected to be well below half the number of those liable to pay the community charge.