Miliband calls for 10p tax rate

The Labour leader Ed Miliband has said he would use the next Budget to bring back the 10p rate of income tax, paid for by a "mansion tax" on homes worth more than £2m. The 10p tax band was controversially scrapped by Gordon Brown.

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Your views on Miliband's mansion tax plans

After Ed Miliband announced that Labour will levy a 'mansion tax' on houses worth more than £2 million if they win the next election, we asked for your opinions on the ITV News Facebook page.

Jean Ballard: Why £2 million, why not houses over £500 thousand, then it includes all the MP's and well off.

Sam Greaves: I think its fair if this happens because if the poor should pay bedroom tax, the rich should pay mansion tax. However in this day and age, can we believe them?

Colin Simpson: Yes, it is right. The rich are not paying their fair share to help with the economic crisis. Some millionaires are tax evaders.

Cable happy Labour has 'seen sense' over 'mansion tax'

Liberal Democrat Business Secretary Vince Cable Credit: ITV News

Responding to Labour's "mansion tax" announcement, the Business Secretary Vince Cable said it is "good that they've seen sense".

He said that levying a tax on houses worth more than £2 million was the "right thing to do" and that it was an "extreme anomaly" that someone living in a mansion pays the same tax as someone in a semi-detached house in the suburbs.

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Balls: Brown was 'wrong' to scrap 10p tax rate

The Shadow Chancellor Ed Balls has admitted the then Labour Chancellor Gordon Brown was wrong to scrap the 10p tax rate.

Balls, who was a key aide to Brown, has written in the London Evening Standard:

Governments make mistakes.

But when they do it is always better to own up and put them right.

The last Labour government did many good things.

But we got things wrong too.

Scrapping the 10p tax rate, which Labour first introduced in 1999, was one of those mistakes.

We would 'put right a mistake' made by Gordon Brown

We would tax houses worth over £2 million and we would use the money to cut taxes for working people.

We would put right a mistake made by [former Prime Minister] Gordon Brown and the last Labour government.

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.

This would benefit 25 million basic rate taxpayers and it would move Labour on from the past and put Labour where it should always have been - on the side of working people.

– Ed Miliband, Labour leader
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