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Labour pledges mansion tax to fund return of 10p rate

by Brian Cantwell on Feb 14, 2013 at 11:55

Labour pledges mansion tax to fund return of 10p rate

Labour leader Ed Miliband has pledged to reintroduce the 10p tax rate, funded by a new tax on properties worth over £2 million.

Miliband (pictured) said the party would bring back the 10p starting rate for tax which was scrapped by Gordon Brown in 2007.

‘We would use the money raised by a mansion tax to reintroduce a lower 10p starting rate of tax, with the size of the band depending on the amount raised,’ he said.

‘This would benefit 25 million basic rate taxpayers.’

Miliband said it was a ‘mistake’ to get rid of it.

He also reaffirmed his support for a temporary cut to VAT to boost economic growth and called for action on train fares, bank charges and capping interest on payday loans.

12 comments so far. Why not have your say?

Paul Howard via mobile

Feb 14, 2013 at 13:27

Good grief, he must be desperate if he is attacking the previous labour government!!!

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Still Deciding

Feb 14, 2013 at 13:29

Finally a decent policy proposal.

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Mrhbeats

Feb 14, 2013 at 13:42

This comes as no surprise as Ed Milliband starts to play the political courtship dance with the Liberal Democrats. He is considering his options and aligning policy to the LDs should there be a hung parliament in 2015.

The man is a puppet to the unions and he should not forget that his shadow chancellor was one of the goons at the treasury that came up with the abolition of the 10p tax which was a complete farce at the time.

While there is some argument for some from of property tax for foreign investors who are pushing up house prices in certain locations beyond the reach of 99.9% of UK residents the whole idea of a mansion tax is preposterous. You will find that many "asset rich" but income poor people will be forced to sell their homes. But of that will be ok because it'll fit in with the "bash the rich" mantra that Labour are chanting.

It should also not be forgotten that someone who pays over £2m for a house already pays at least £140,000 tax in the form of stamp duty.

Better to do what the coalition are doing at the moment in so much raise personal allowances to take people completely out of tax rather the create more tax rates and taxes to complicate things even further. The way things are going now though we'll all either pay nothing or 40% as the 20% band gets smaller and smaller.

Heaven help us all if this shower get in in 2015.

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John Law

Feb 14, 2013 at 13:43

Remember the 'Brain Drain' of the 'Labour 1970's, the next Labour government is just going to push all our entrepreneurial wealth producers out of the country, the rich of the UK already contribute much more than their fair share to running this country, hit them harder and they will be the ones running (away to greener pastures). China and Asia's success has been largely due to attracting wealth producers to make their countries richer....

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Paul Barnard

Feb 14, 2013 at 14:10

Yes John, whilst many of their populace starve in the streets.

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John Law

Feb 14, 2013 at 14:18

Sorry Paul, but you are wrong, people were starving on the streets when the governments were concentrating on 'sharing out the wealth cake' fairly, now they freely allow people to have a bigger share, there is a much much bigger cake, so everyone in Asia is eating well, do come out here and take a look...

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Still Deciding

Feb 14, 2013 at 14:27

@John, read the book Treasure Islands by Nicholas Shaxon, the rich most certainly do not pay more than their fair share (or in many cases any of their fair share).

Also the idea of a 'brain drain' is a fallacy. People will not leave a country for a lower tax regime if there is no rule of law, or no stable government etc.

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Mr Man

Feb 14, 2013 at 14:31

@ John Law "entrepreneurial wealth producers" is an elongated euphemism for greedy gits. Chasing down wages by employing cheap immigrant labour to line their own pockets. You are based in Asia.! Cotton trade sweat shops and country girls selling sex at 14. Yeh right great business module to follow .

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John Law

Feb 14, 2013 at 14:53

'Still Deciding' I agree people look at the total package before leaving their home country, but the fact is already Over five million British citizens have moved overseas. Four thousand more depart permanently each week. Pollsters YouGov quizzed 1,650 adults last year and found that 48% are seriously considering leaving the UK. Only 11 per cent said there was nothing that could make them want to leave the UK.

Mr Man, your comments were right about Asia just a very few years ago, but things out here have changed a lot....

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Michael Brown

Feb 14, 2013 at 14:56

Instead of knocking each other another crazy idea from the loony Labour party.

It has been calculated that the 10p tax band will cost £7Billion. Now that is an awful lot of monies from the £2m properties which goes to prove their maths has not changed yet. Perhaps the Queen will have to pay? Back to school Mr Milliband.

Now let’s look at the reduction in VAT. The last lot tried it and at a cost of some £12.5B. The benefit was negligible apart from imports which is not what we want.

Chaps we do not have the money, just realise the mess left behind by the loony’s last time!! Do we really want these back in power so soon?

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Sascha K

Feb 14, 2013 at 16:07

"You are based in Asia.! Cotton trade sweat shops and country girls selling sex at 14. "

Absolutely right old boy. Why pay a 14-year-old girl for sex when you can just get her catatonic on vodka and ketamine, like over here?

On topic: hello Mr Milliband, I think you've accidentally picked up some speech notes from 2008. The momentum in favour of flat taxes is such that even the polits are now in favour of simplifying the tax system for low earners by increasing the personal allowance, not introducing yet another tax band.

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philip spierling

Feb 14, 2013 at 18:25

Did not ED MILLIBAND and the esteemed ED BALLS get rid of the ten pence rate along with that fantastic chancellor and economic power house GORDON BROWN

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