Stamp Duty

One aspect of moving home, which has affected both house prices and house shortages, is the progressive increase in Stamp Duty since the Blair/Brown regime came to power.

On March 22nd, 2007, The Times reported that Stamp Duty had increased by 31% since 2005 (http://business.timesonline.co.uk/tol/business/economics/article1554614.ece) while four days later, Property Finder revealed that the average Stamp Duty paid had increased from an average of £543 to £5,009 since 1997 (http://news.bbc.co.uk/1/hi/business/6483697.stm.), an increase of 922%.

As moving house now costs, on average, £9,500 in addition to the purchase price, many people are staying where they are and generating the housing shortage that we see today, in turn driving up prices for the property that is available. More critically, as the average house price can no longer be realistically met by the average salary, the increase in moving costs simply put potential first-time buyers further away from the first rung of the property ladder, or add to their financial burdens.

Housing Shortages

In 2001, levels of home building had risen to 165,000 but Government indications suggest that 200,000 homes need to be built each year to meet requirements. The failure to build sufficient housing to cope with need has, in part, played a significant role in driving up house prices.

Of course, Blair doesn’t have any trouble finding housing for himself: he’s just bought number five.

Rising House Prices

House prices in the UK have risen by 199% since 1995/1996 (see: http://www.ukpropertyshop.co.uk/news/373.shtml) and rose by 5.43 percent in 2006 alone, far outstripping the rate of inflation. Of the ten most expensive areas to buy property in the UK, the “cheapest” (Bath and North East Somerset) had an average house price of £253,364.
This means that it is becoming increasingly difficult for people to get on the first rung of the property ladder.

With the average UK salary now standing at £22,500, it is impossible for people to get mortgages to cover the cost of buying a house. In 2001, 40% of under 30 households were buying with a mortgage and 33% were renting privately. By 2006, the situation had changed with 34% buying and 41% renting.

It is also interesting to note that the property in 236 postal codes in the UK have an average price at such a level that they are above inheritance tax levels compared with 117 postal codes just five years ago. This means plenty of paydays for the government when their owners die.

Gambling & Poverty

One benefit of increased gambling is that it means increased revenue from taxation. Since many of our industries are now being exported, the creation of a new service industry helps create a new revenue stream for the Government.

Unfortunately, it is widely perceived that it is mainly the poorer elements of society that gamble -- those that are most desperate for the money that can be won are usually those who can least afford to lose what little money they've already got. (see The Guardian's article, "It's simple. More gambling means more child poverty" at http://www.guardian.co.uk/gambling/story/0,,2043578,00.html

But since none of them are likely to become major contributors to party funds, I'm sure this isn't much of a concern. Of course, as a stealth tax on the working class it also means that Blair and Brown can leave the middle classes alone so as not to jeopardise their votes in the next election.

Gambling & Crime

During New Labour's deregulation of Gambling laws, allowing the building of a Super Casino and 100 smaller casinos around the country, they regularly pointed to the success of America's Atlantic City - a town which has been transformed by the gambling industry.

The Casinos of Atlantic City have been said to have helped regenerate the area, bringing wealth and jobs to a city that was largely lacking in both. However, they have failed to also point out that the casinos have brought with them compulsive gamblers, elevated bankruptcy rates (twice the average of neighbouring areas) and crime such as money laundering: Atlantic City showed a jump in crime when gambling was legalized. The city went from 50th in the nation in per capita crime to first (source: http://www.library.ca.gov/CRB/97/03/Chapt11.html). Las Vagas, meanwhile, revolves around the Gambling industry and is notable for the fact that it has the second busiest crime lab in the USA after the FBI labs at Quantico.

Peter Mandelson

Probably the only Cabinet Minister to be ‘sacked’ twice and still be given a cushy European job for his efforts.

In 1998 it was revealed that Mandelson had bought a home in Notting Hill in 1996 (i.e. prior to Labour winning the 1997 election) with the assistance of an interest-free loan of £373,000 from Geoffrey Robinson. Robinson was also a Labour MP in the Government the new government, but was subject to an inquiry into his business dealings by Mandelson's department. Mandelson failed to declare his interest in the affair and this led to Mandelson's first "resignation" (i.e. sacking).

Ten months later, he was brought back to government as Secretary of State for Northern Ireland, and in 2001 forced to resign again after it was revealed that he had been lobbying a Home Office minister for passports for a couple of Indian businessmen who were being approached to be the main sponsors of on of the Millennium Dome zones. At the time, the two brothers were being investigated in India for their (alleged) participation in a scandal that had taken place in Indian politics during the 1980s -- specifically, one that was about government corruption and politicians being given kick-backs in return for their "correct" decisions.

Nowadays Mandelson is British Commissioner of the European Union for Trade and has a great seat on the gravy train.

John Prescott

Probably the most ineffective Cabinet Minister ever with the knack of getting overpaid whether he has job or not. Some of Prescott’s “highlights” while Deputy Prime Minister have included:

•Throwing a punch at a protestor who'd thrown an egg at him.

•Having his council tax paid for him out of the public purse. (http://news.bbc.co.uk/1/hi/uk_politics/4607110.stm)

•Having a number of sexual infidelities and harassment allegations, including his affair with Tracey Temple.

•Keeping his £134,000 a year Cabinet salary, chauffeured Jaguar car, his grace-and-favour flat at Admiralty Arch and the official country residence Dorneywood, in Buckinghamshire, despite losing his department. (http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=392986&in_page_id=1770)

•Being photographed playing croquet at Dorneywood when acting Prime Minister while Tony was away on holiday. (http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=388046&in_page_id=1770)

•Going on holiday to Phil Anschutz' ranch in America. Phil Anschutz is a gambling magnate and the man trying to convert the Millenium Dome into a Super Casino. Prescott had been chairman of the Cabinet committee responsible for developmental planning in the UK at the time. (http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/07/09/npresc09.xml&sSheet=/news/2006/07/09/ixuknews.html)

•Despite being Acting Prime Minister during the airport terrorism crisis of August 2006 (Tony was away on holiday, again) it was actually John Reid who chaired most of the meetings and key cabinet committees. Prescott was incredibly quiet throughout the period. (http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=400058&in_page_id=1770&in_a_source=)