Govt split over 'mansion tax'

The Coalition appears split over a "mansion tax." George Osborne told ITV's The Agenda said it will not be next month's Budget, calling it a "tax con". But Nick Clegg told ITV News the Tories "can't keep turning a blind eye to the super wealthy."

Live updates

Osborne: Labour's mansion tax plans are a 'tax con'

The Chancellor George Osborne has attacked Labour proposals for a mansion tax as a "tax con" during an appearance on ITV's The Agenda.

Last week Labour leader Ed Miliband and shadow chancellor Ed Balls announced the proposals to put a levy on £2 million-plus homes**, which they said would go towards paying for a 10p income tax rate.

Mr Osborne, though, rejected such a policy, telling the programme:

It's very costly to implement.

It means you have to send inspectors round the country valuing all the homes - not just the homes worth over two million but those worth less... It's actually a tax con that you know there aren't that many mansions in the country that can be taxed to pay for some tax cut for millions of people.

So either it's a tax con and the money comes from somewhere else or it's soon a homes tax and they say it's a mansion tax before the election and then very quickly becomes a homes tax on many people who are not living in mansions at all.

The Agenda with Tom Bradby will be broadcast on ITV at 10.35pm tonight.

Load more updates Back to top

Latest ITV News reports