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

Liberal Democrat Business Secretary Vince Cable
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.

Read: Miliband announces plan to reintroduce 10p tax band

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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.