Ed Miliband is facing resistance from senior Labour MPs
in London. Former Labour local
government minister, Nick Raynsford described the plan as "good politics
but bad policy". He said what was urgently needed was a revaluation of
council tax for the first time since 1991, to create extra bands for the
highest-value properties as the basis for a "progressive" tax on
property. Raynsford said the current system, under which people in properties
worth just over £320,000 pay the same council tax as those in homes worth tens
of millions, was "grossly unfair" and a "complete
nonsense". Reform of council tax was the way forward, rather than a
mansion tax, which would create many anomalies and be complex to introduce. Senior
Labour figures fear that, under Miliband's plan, people who are "asset
rich but cash poor" – having seen the value of their properties rise –
will be unfairly hit by the new tax, with some being driven out of their homes.
Read more on the Observer website.
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