The Liberal Democrats have revised their long-standing plans for a “mansion tax” and would instead impose higher council tax bills on homes worth more than £2m. The switch could give Nick Clegg’s party a better chance of achieving its goal of higher property taxes for the rich if there is another hung Parliament after next year’s general election. The Chief Secretary to the Treasury, Danny Alexander, said his party would no longer call for a 1% annual levy on the value of a property worth more than £2m. Instead, it would propose a “modest additional banded levy on top of council tax for high-value properties”. Meanwhile, research by Zoopla has suggested that if a “mansion tax” was introduced then two-thirds of it would be paid for by homeowners in three central London boroughs – Kensington and Chelsea, Westminster and Camden.
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With thanks to the LGiU for this story