The right warms to property taxes

Tory MPs and others on the right are beginning to recognise the case for greater taxation of propert

I recently noted that Tim Montgomerie, the influential editor of ConservativeHome, had declared his support for greater taxation of property (including a version of Vince Cable's "mansion tax"), a cause the New Statesman has long championed. Since then, others on the right have joined him. In a piece on ConservativeHome today, Tory MP Mark Reckless, rightly noting that we tax property less than almost anywhere else in the world, calls for a range of new property taxes to replace the 50p rate. He calls for the coalition to ensure the rich pay stamp duty (many avoid it by putting properties into shell companies), to levy capital gains tax on non-UK residents and to introduce a mansion tax, although with the threshold set at £5m rather than £1m or £2m. In return, he says, the coalition should reduce the 50p rate to 45p and the 40p rate to 38p.

Elsewhere, the Spectator's James Forsyth writes about the growth of the "undeserving rich", those who have acquired huge wealth through illegitimate means. Forsyth cites the example of bankers and oligarchs but, to my mind, this category should also encompass those who have benefited immensely, through little effort of their own, from the dramatic rise in house prices over the last decade. As NS editor Jason Cowley argued in a October 2010 cover story ("The coming battle over land and property"), there is a strong meritocratic argument for heavier taxation of unearned wealth (inheritance, property and land) and lighter taxation of earned income. Property taxes are also harder to avoid than those on income (you can't move a mansion to Geneva) and reduce the distorting effect that property speculation has on the economy. For the psephologically minded, it's worth noting that high-end property taxes are popular. Last week's Sunday Times/YouGov poll found that 63 per cent of the public (including 56 per cent of Tories) support a mansion tax, with just 27 per cent opposed (38 per cent of Tories).

Yet most on the right remain instinctively hostile to Vince Cable's call for greater taxation of land and property. They should realise that they are missing a trick. In an age of austerity, the Tories cannot afford to be seen as the party of the wealthy. Replacing the 50p rate with a range of new property taxes would change the terms of debate and send Labour back to the drawing board (the 50p rate may not raise as much revenue as Ed Miliband and Ed Balls hope). Simply abolishing the top rate is neither morally, nor politically, nor fiscally credible. The right should not miss an opportunity to demonstrate that it can think imaginatively about wealth, property and opportunity.

George Eaton is political editor of the New Statesman.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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