Clegg renews his push for a mansion tax

The Deputy PM warns that coalition support will fade if the rich are not targeted.

It's Nick Clegg's turn to pitch his tent on the increasingly congested terrain of "responsible capitalism" today. As I write, Clegg is delivering a speech at Mansion House in which he makes a distinctively liberal argument for reforming the market. Calling for workers to be given the right to request shares in the companies they work for, he argues:

John Stuart Mill hoped that employee-owned firms could end what he called the 'standing feud between capital and labour'. And liberals have been championing it ever since. We don't believe our problem is too much capitalism: we think it's that too few people have capital. We need more individuals to have a real stake in their firms.

Encouragingly, we also learn this morning that the Deputy PM has renewed his push for George Osborne to adopt some form of property tax. There's no chance of the Chancellor adopting a "mansion tax" immediately, not least because the 50p tax rate will now remain for the duration of the parliament, but it's possible that he will set up a review to look at raising more from the rich by shifting the burden of tax from income to wealth and act to reduce stamp duty avoidance.

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 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. A recent 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.

Clegg's warning that public support for the coalition's deficit reduction programme could fade unless the rich shoulder more of the burden is a prescient one. Those who have benefited immensely, through little effort of their own, from the dramatic rise in house prices over the last decade are an obvious target. Labour, which has been curiously absent from this debate, should not miss a rare opportunity to make common cause with the Lib Dems.

Update: In the Q&A session following his speech, Clegg played down hopes of a mansion tax - "I lead a party with eight per cent of MPs in parliament" - but said he still hopes for "progress" in this area.

George Eaton is political editor of the New Statesman.

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Metro mayors can help Labour return to government

Labour champions in the new city regions can help their party at the national level too.

2017 will mark the inaugural elections of directly-elected metro mayors across England. In all cases, these mayor and cabinet combined authorities are situated in Labour heartlands, and as such Labour should look confidently at winning the whole slate.

Beyond the good press winning again will generate, these offices provide an avenue for Labour to showcase good governance, and imperatively, provide vocal opposition to the constraints of local government by Tory cuts.

The introduction of the Mayor of London in 2000 has provided a blueprint for how the media can provide a platform for media-friendly leadership. It has also demonstrated the ease that the office allows for attribution of successes to that individual and party – or misappropriated in context of Boris Bikes and to a lesser extent the London Olympics.

While without the same extent of the powers of the sui generis mayor of the capital, the prospect of additional metro-mayors provide an opportunity for replicating these successes while providing experience for Labour big-hitters to develop themselves in government. This opportunity hasn’t gone unnoticed, and after Sadiq Khan’s victory in London has shown that the role can grow beyond the limitations – perceived or otherwise - of the Corbyn shadow cabinet while strengthening team Labour’s credibility by actually being in power.

Shadow Health Secretary and former leadership candidate Andy Burnham’s announcement last week for Greater Manchester was the first big hitter to make his intention known. The rising star of Luciana Berger, another member of Labour’s health team, is known to be considering a run in the Liverpool City Region. Could we also see them joined by the juggernaut of Liam Byrne in the West Midlands, or next-generation Catherine McKinnell in the North East?

If we can get a pantheon of champions elected across these city regions, to what extent can this have an influence on national elections? These new metro areas represent around 11.5 million people, rising to over 20 million if you include Sadiq’s Greater London. While no doubt that is an impressive audience that our Labour pantheon are able to demonstrate leadership to, there are limitations. 80 of the 94 existing Westminster seats who are covered under the jurisdiction of the new metro-mayors are already Labour seats. While imperative to solidify our current base for any potential further electoral decline, in order to maximise the impact that this team can have on Labour’s resurgence there needs to be visibility beyond residents.

The impact of business is one example where such influence can be extended. Andy Burnham for example has outlined his case to make Greater Manchester the creative capital of the UK. According to the ONS about 150,000 people commute into Greater Manchester, which is two constituency’s worth of people that can be directly influenced by the Mayor of Greater Manchester.

Despite these calculations and similar ones that can be made in other city-regions, the real opportunity with selecting the right Labour candidates is the media impact these champion mayors can make on the national debate. This projects the influence from the relatively-safe Labour regions across the country. This is particularly important to press the blame of any tightening of belts in local fiscal policy on the national Tory government’s cuts. We need individuals who have characteristics of cabinet-level experience, inspiring leadership, high profile campaigning experience and tough talking opposition credentials to support the national party leadership put the Tory’s on the narrative back foot.

That is not to say there are not fine local council leaders and technocrats who’s experience and governance experience at vital to Labour producing local successes. But the media don’t really care who number two is, and these individuals are best serving the national agenda for the party if they support A-listers who can shine a bright spotlight on our successes and Tory mismanagement.

If Jeremy Corbyn and the party are able to topple the Conservatives come next election, then all the better that we have a diverse team playing their part both on the front bench and in the pantheon of metro-mayors. If despite our best efforts Jeremy’s leadership falls short, then we will have experienced leaders in waiting who have been able to afford some distance from the front-bench, untainted and able to take the party’s plan B forward.