This was something that broke while I was on annual leave, it’s really infuriating to see that the property tax which was meant to be a fresh start for local authorities funding is (for 2013) not going to be given to them.
While a politician will always find a way to wiggle out of being called a liar, it’s pedantic to the extreme to think that the public would have realised that it was only going to local government from 2014 and not from the outset. If that was common knowledge it wouldn’t have made a headline so recently.
Given that this is bad outcome it does have to be balanced, and saying that the money is ‘going to bondholders’ is populist nonsense. If it is in the general expenditure coffer then it could go anywhere, you could equally spin the story that it’s going towards cancer wards in hospitals, that it is going towards supporting the homeless or anything else.
The tragedy here is that on the starting year the tax is not being used for local governments, because that was a large part of the justification for which raising it was made, the tax is already unpopular, this will only make it more unpopular while also eroding its credibility. Such a mixture makes it a target for repeal by successive governments, and the electorate can hardly be blamed if they do support its end given that at the launch it was founded on falsehoods.