But Murphy said it would be hard for the UK to replicate the Singapore model. “More than 80% of people live in government-owned housing so it does not need to tax people, it just charges rent. And many of its largest companies are also state-owned so, again, local taxes on profits do not matter as much as they do in the UK, because the government gets a large chuck of local profits anyway. It can offer low taxes and not have its revenues threatened. This is fundamentally different to the UK, where the government is dependent on tax.”
Amazingly, rent on public housing does not appear as a source of revenue in this estimation of Singapore’s income. The expenditure side of the budget shows significant appropriations to build the flats too. Oh, and Singapore doesn’t charge for the value of the underlying land in its state housing prices.
How much can you charge – or perhaps how much profit can be made – from rental housing if you’re not charging that land value? Not a lot I think is the answer, no? So public housing in Singapore is contributing how much to the general budget? If it’s not in fact a drain on it?