Lib Dems revise 'mansion tax' to hold votes in affluent constituencies

Published on Monday 30 November 2009 21:54

THE Liberal Democrats have dramatically reformed their plans for a "mansion tax" in an effort not to scare off potential voters in affluent constituencies.

The party raised its proposed tax threshold on homes from 1 million to 2m – but has doubled the levy to 1 per cent.

Party leader Nick Clegg said the reformed tax would raise more revenue than the old policy, which had a chaotic launch at the party's conference in September.

The party is fighting to hold on to constituencies that are being heavily targeted by the Conservatives.

It is claimed that the change to the tax would raise 1.7 billion and would also allow the Lib Dems to lift the threshold for income tax to 10,000.

Mr Clegg said: "Our plans represent the most radical, far-reaching tax reform in a generation."

He added: "It is right to ask those with the broadest shoulders to bear a little more of the burden so that millions of people on normal earnings get the break they desperately need."

The change to the "mansion tax" follows an internal review after the policy's botched debut at the party conference where the Treasury spokesman, Vince Cable, was blamed for failing to brief colleagues fully on the measures.

It was not known how the tax would be administered north of the Border, and one senior Lib Dem described the levy as "codswallop".

The 1m threshold would have hit 250,000 homes, but the new level of 2m means up to 80,000 will be affected, the Lib Dems say. The party would also bring in a local income tax to replace the council tax.