The TaxPayers’ Alliance is today calling on the government to ignore demands for higher taxes on the elderly to address intergenerational unfairness – and instead take urgent action to solve the housing crisis.
Young people today enjoy many advantages that older generations never had at their age. Freer markets have led to an ever-increasing standard of living and big reduction in poverty.
But the young get a bad deal when it comes to housing. In a new report released today, the TPA argues for drastic reform to Britain’s planning system to kick start house building for the next generation of families.
Left leaning think tanks have called for a tax on older people to heal the inter-generational divide, but this would do nothing to resolve the key issue facing young people today – the housing crisis. Instead of taking money away from pensioners and families through punitive tax increases, the government should take urgent action to allow more homes to be built.
Homes are most expensive mainly in the areas where job prospects are strongest. What’s more, the evidence shows that the restrictive planning system means a shortage of housing, which of course drives up costs.
We should grant property developers substantially more freedom to build homes where they’re needed. That would result in a fall in costs over time and more of us – particularly younger people who are more mobile – will be able afford to take up better jobs while reducing the cost of living for everyone else.