Each year the European Commission produces a report on each member state, with the intention to help ensure long-term growth. In its report to the UK it advises the government to "Remove distortions in property taxation by regularly updating the valuation of property and reduce the regressivity of the band and rates within the council tax system." Essentially to increase council tax on higher value properties. This will have a great affect on those living in London where house prices continue to rise.
The report also recommended that new houses be built and the 'Help to Buy' scheme to be adjusted, to "respond to the rapid increases in property prices." It also called for the prioritization of capital spending, affordable childcare, ensure that banks lend to small firms and to make the planning system more predictable.
The UK Treasury said that as one of the fastest growing economies, the UK would listen to the commission with interest.
However this report comes at a time of great EU skepticism, with the Anti EU party UKIP making a lot of gains in the recent European and local elections. There will surely be some who see this advice as yet more involvement in the UK affairs.
The UK Prime Minister is also currently in negotiations over the next president of the European Council. Where he hopes to put forward the case for EU reform. This report will only make the negotiations more critical for the Prime Minister where he must be seen to fight against more European integration.
Many of his own MPs will seize on this to show that the direction of Britain and the EU in relation to economic policy and who to be the next EU president is ever diverging.
UKIP will undoubtedly seize on this well, blaming the need to increase housing on the 'uncontrolled' immigration from the EU member states.
At a time when the UK economy is gaining ground again and the recovery is becoming stronger, compared to the EU. With member states like Spain and Greece, whom in recent years have seen unemployment rates of 25.93% in Spain and 26.5% in Greece.
It is no surprise that tension will only increase as a result of this report.
Is it right then for the EU Commission to provide such criticism of the UK government? Will it only drive the UK population further away from the EU?
