Cameron rules out 'mansion tax'

Written By Unknown on Minggu, 07 Oktober 2012 | 19.12

7 October 2012 Last updated at 07:50 ET
David Cameron

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"I don't want to be a country that comes after you every year with a massive great tax and so that is not going to happen"

Prime Minister David Cameron has ruled out a new tax on expensive properties but vowed "further action to ensure rich people pay their fair share".

He told the BBC's Andrew Marr show new measures would be unveiled before the next election.

His statement comes as Conservative activists gather in Birmingham for the party's conference.

Mr Cameron's decision could put him on a collision course with the Lib Dems who back such a "mansion tax".

Asked about an annual tax on property he told Andrew Marr: "That is not going to happen."

He said that if people worked hard and saved, invested in a property and paid down their mortgate, he didn't want the UK to "be a country that comes after you every year with a massive great tax and so that is not going to happen."

Chancellor George Osborne also rejected Lib Dem calls for a mansion tax - and an annual levy on wealth - saying those ideas were not the right way to make sure the rich made a greater contribution.

'Not sensible'

He told Sky News: "I don't think the mansion tax is the right idea because I tell you before the election it'll be sold to you as a mansion tax then after the election a lot of the people in Britain are going to wake up and find their more modest homes have been reclassified as a mansion.

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The political weather for the Conservatives in recent months has been overcast at best. Gloomy opinion polls, an upbeat Labour Party after Ed Miliband's speech last week, and above all else, a struggling economy.

The focus at the start of the conference will be on ideas designed to be popular and eye-catching. Council tax in England will be frozen again next year. Rail fares for many commuters will be capped at no more than one percent above inflation. The prime minister has also promised to veto the European Union's long term budget, if he deems it excessive.

In an interview with the Sunday Telegraph, David Cameron directly tackles Ed Miliband's claim to be the new custodian of the political centre ground. It is territory the Conservatives will not desert, he insists. But Mr Cameron does acknowledge he has not done enough to explain what the government is trying to achieve.

"Nor do I think it's sensible to have a wealth tax in the sense of a tax on your wealth levied annually.

"But I'm very clear that the rich will have to make a contribution to closing the budget deficit."

In addition to his stance on the mansion tax, Mr Osborne is also understood to have ruled out introducing new council tax bands on high-value homes.

In his Marr interview, Mr Cameron insisted it was "too early to say" whether the government would miss its key target for public sector debt to be falling by 2015, as some experts are predicting.

Council tax freeze

But he said the Conservatives would "level" with the public about the need for another £16bn of spending cuts in 2015-16.

"We have to find these spending reductions and if we want to avoid cuts in things like hospitals and schools - services that we all rely on - we have to look at things like the welfare budget," he said.

But he promised to stand by his promise not to cut universal benefits for pensioners - such as free bus passes and winter fuel payments.

He is also expected to announce a council tax freeze in England at next week's party conference.

And there is to be a cap on how much regulated train fares can go up by - so ticket prices will not rise by more than 1% above the rate of retail-price inflation (RPI).

Liberal Democrat Leader Nick Clegg made it clear at his party's conference that he would only sign up to further cuts in the welfare budget if a wealth tax was imposed by the chancellor at the same time.

Conservative Chairman Grant Shapps said the Tories would focus on bread-and-butter issues such as the cost of living at its annual conference, as well as emphasising its "serious" commitment to cutting the deficit.


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