Halifax will lobby all three main political parties, none of which has yet formally committed to a significant reform of the UK's property tax regime.
The need for reform is pressing. Research from the OECD shows that UK property taxes as a percentage of Gross Domestic Product (GDP) are the highest for any major developed country. According to the OECD, UK property taxes have risen from 3.7% of GDP in 1995 to 4.3% in 2002, the most current data available. In contrast, the average for Euro-zone countries is just 1.9%.
The UK is one of only four OECD countries where property taxes make up more than 10% of Government revenues, the Euro-zone average is 4.9%. In the UK, property taxes as a percentage of total Government revenue has increased from 10.5% in 1995 to 12.0% in 2002.
