Islington Labour councillors have stepped up their campaign against the Tory Government’s plans to force council tenants to pay more tax.
The Tory Tenant Tax will hit working people in Islington and Islington Labour is urging residents to sign a petition against the unfair Tory Tenant Tax.
The Tories’ new law will -
- Make tenants pay 15% more tax for every £1 they earn over £40,000 per household.
- Force the Council to sell hundreds of homes each year, making it even harder for local people to find an affordable home in Islington.
- Ban new lifetime tenancies, ending the security that Islington Council tenants are currently offered.
Islington Labour is on your side. Together we can stop the Tories.
The Tory Tenant Tax is part of the Housing and Planning Act, and will introduce a new tax for tenants living in council housing who have a combined annual household income of over £40,000 in London. The Tories will force those affected to pay a 15% additional tax on every pound they earn above £40,000.
The threshold for household income at £40,000 per year is too low. It means a newly qualified teacher and nurse living in a council house in Islington would be hit with a charge of £750 per year. Many Islington households will struggle to meet the new charge.
The Tory Tenant Tax will apply to tenants regardless of their age, the makeup of their household or how long they have lived there. Households that receive benefits (Housing Benefit or Universal Credit) will not have to pay Tenant Tax. The Council will have to collect this money, with all proceeds going to the Tory Government who continue to make damaging cuts to our community.
The Tory Tenant Tax will also be a disincentive to work. People will have to consider whether taking on a job or a promotion will be worth it because, if they are pushed over the new income threshold, any benefit could by lost through having to pay the Tory Tenant Tax.
Cllr Diarmaid Ward, Islington Council’s Executive Member for Housing and Development, said:
“The Tory Government hasn’t published much of the detail of how it plans to implement the Tenant Tax, so now is the time to stop it from coming in. We need to tackle the housing crisis, so that Islington can remain a home for everyone.”