Theresa Villiers, Conservative Parliamentary Candidate for Chipping Barnet, has been on the doorstep today talking to people about her campaign against Labour’s proposed ‘Mansion Tax’.
Theresa said: “I am strongly opposed to Labour’s tax on the family home and I have met many people in Barnet who share that view. Labour’s so-called ‘Mansion Tax’ would hit ordinary homes in Barnet, including many which are nothing like mansions. This is a tax on London. If you want to take action to stop Labour’s homes tax, please contact me to join my re-election campaign.”
The facts about Labour’s plans for a new tax on family homes
Labour claim this proposed new tax will only hit mansions, but history shows this is how all taxes start – once they get a foot in the door they will tax ordinary homes. There are already clear signs that this would happen.
Ed Miliband said only homes worth £2 million would be hit – but Labour MP and potential mayoral candidate, David Lammy, says homes worth £1m or less could be taxed too (Evening Standard, 03/09/14). A senior Labour figure is demanding the tax to be extended to homes worth over £400,000 (Claire Reynolds, quoted in the Sunday Express, 10/08/14).
In reality, this policy is likely to affect an even wider range of homes because Labour would almost certainly need to revalue all properties to deliver their new tax. The last Council Tax revaluation in England took place in 1991. When homes in Wales were revalued a few years ago, most of them went up by one or more Council Tax bands. So if we have a revaluation here in England, it is likely that millions of people would be put into a higher band and have to pay Council Tax, even if they are lucky enough to escape Labour’s homes tax when it is first introduced.
Tessa Jowell, MP and potential Labour candidate for London Mayor, has said candidly: ‘Let's stop calling it a 'mansion tax', these are not mansions, these are family homes that have accrued in value’ (New Statesman, 20 October 2014). She has admitted that "people would have to move out of their family homes" if the tax goes ahead (Guardian, 26/11/13).
Labour said only 'the most wealthy' would pay their new homes tax - but now they're saying that everyone who earns £42,000 or more will have to pay up front. They said pensioners would be protected - but now they're saying pensioners will have to pay after they die. Even when it starts, the tax is planned to be as high as 1% of the value of the property.
Jim Murphy, leader of the Scottish Labour Party has said ‘We will tax houses in London and the South East to pay for 1,000 new nurses in the Scottish NHS. It’s a real win-win for Scotland’ (Evening Standard, 6 January 2014).