The Government must stand firm on Capital Gains Tax Proposals

Letter to West Briton 3/6/2010

Well done for your excellent analysis regarding the housing shortage in Cornwall (A home of their own will remain dream for most- West Briton 27/5/2010).Your articles summarised the history of failure of previous governments to address the issue. Our new MP’s must address the need for rented and affordable housing in Cornwall as ‘the key issue of our time’.

Your correspondent AG Rawlings also analysed the situation correctly in the letter ‘Work for the working man’ (Letters 27/5/2010) by linking rural depopulation, the resulting closure of local shops, the pursuit of national government over the years for free trade and profit at the expense of community. The Green Party is the only main party which does not accept the current economic model is sustainable or desirable. We believe in the need to rebalance our societal and economic priorities in favour of rebuilding our communities and supporting small business against sectional interest, large corporations and multinationals.

The new government’s initiative to raise Capital Gains Tax (CGT) on the sale of second homes to 40% to reduce demand from speculators and investors is commendable. This measure would help ensure housing in our communities is more affordable, and there will be a subsequent demand for local shops and businesses to thrive once more.

However, after picking up discarded copies of the ‘Times’ and ‘Financial Times’ on the train this week, I am concerned at the backlash of the right wing press, the right wing of the Conservative Party and subsequent speculative talk from some members of the cabinet to water down the CGT proposals. There is already much grinding and gnashing of teeth from right wing commentators that the proposals to raise CGT are ‘unfair’. This makes my blood boil. What is unfair is that ordinary local people cannot have a decent, affordable roof over their heads, small Cornish communities are dying and that the Coalition proposals to slash public expenditure will have a disproportionate impact the poor and vulnerable.

We are all aware that many second homes have been purchased by those working in the City and in big business who actually have contributed significantly, through short term and selfish interest, to get our country in to the mess it is now in. However these people fail to accept their share of financial responsibility although are quite happy for ordinary people to pay more tax and have services cut, while the wealthy think they can carry on as normal.

I hope the government will stand firm regarding its CGT proposals. It must face off its opponents on this measure as it represents a key tool in helping to rebuild local communities, and enable local people to have a home in the communities where they are born and bred. Subsequently we can then begin to see local communities thrive once more for the benefit of ordinary people rather than the wealthy.