1. ITV Report

Tax row sets the tone for by-election and beyond

Labour leader Ed Miliband speaks to former Liberal Democrat voters during his visit Eastleigh in Hampshire. Photo: Steve Parsons/PA Wire/Press Association Images

The Chancellor George Osborne has joined a global pledge to combat tax avoidance by multi-national firms. The move comes as Labour leader Ed Miliband continues to promote his tax plans which include a 'mansion tax' - a strategy that could put the Coalition under renewed strain.

ITV News' political correspondent Carl Dinnen looks at the battle over taxation:

Full list of candidates for the Eastleigh by-election:

  • Conservative - Maria Hutchings
  • Labour - John O'Farrell
  • Liberal Democrats - Mike Thornton
  • UK Independence Party - Diane James
  • National Health Action - Iain MacLennan
  • Independent - Danny Stupple
  • English Democrats - Mike Walters
  • Monster Raving Loony Party - Alan Hope
  • Wessex Regionalists - Colin Bex
  • Elvis Loves Pets - David Bishop

Ed Miliband promoted his plans for a "mansion tax" and to introduce a 10p tax rate, during a visit to the hotly contested Eastleigh seat today.

The Labour Party leader hopes to woo the Hampshire borough - formerly represented by disgraced Liberal Democrat ex-cabinet minister Chris Huhne - from the the Conservative party.

He said that Labour was in favour of reviving the 10p income tax rate - a move that could be paid for by a levy on £2 million-plus homes.

"This is a living standards by-election, that's the issue on the minds of so many people in Eastleigh - not being able to afford the weekly food bill, not being able to afford to fill up the car," Miliband said.