Failing to vote for a mansion tax would be another Lib Dem betrayal

The Lib Dems have a simple choice – either they back their flagship policy by voting for Labour's motion or they don’t.

The Lib Dems have repeatedly said they support a mansion tax. Today they have a chance to vote for one.

This isn’t just a bygone pledge from their now notorious 2010 manifesto. Nick Clegg has made it the centrepiece of his leadership in the last few weeks. Kicking off the Eastleigh by-election last month, he called for "taxes on mansions, tax cuts for millions".

He said: "the mansion tax is an idea whose time has come" and that opponents of it should "join with the Liberal Democrats and the chorus of voices seeking to make our tax system fair." So it would be astonishing if Nick Clegg and his MPs today failed to back a straightforward motion supporting their long-held policy of a mansion tax on properties over £2m.

As Vince Cable himself said: "If it is purely a statement of support for the principle of a mansion tax, I'm sure my colleagues would want to support it."

And that's exactly the motion we tabled last Friday:

That this House believes that a mansion tax on properties worth over £2million, to fund a tax cut for millions of people on middle and low incomes, should be part of a fair tax system and calls on the Government to bring forward proposals at the earliest opportunity.

Is there anything in this motion that Liberal Democrat MPs disagree with? Asked this very question by Andrew Neil, the Lib Dem party president, Tim Farron, said: "none of it." And as Vince Cable’s friend Lord Oakeshott said last month: "If they [Labour] move a core Liberal Democrat flagship policy like that why wouldn’t Liberal Democrat MPs support it?"

That is a question every Lib Dem MP should ask themselves today. Because the government amendment today in the name of the Prime Minister is pure political fudge - it simply notes that "parts of the coalition" support a mansion tax and others don't.

So Liberal Democrat MPs shouldn't kid themselves that voting for David Cameron's amendment means they have voted for a mansion tax or done anything to help secure one. The Lib Dems have a simple choice – either they back their flagship policy by voting for today's motion or they don’t. No amount of wriggling or contortion can get them out of that simple choice.

At a time when the flatlining economy, cuts to tax credits and higher VAT means millions of working people are seeing their incomes squeezed like never before, there is a clear case for asking the wealthiest to make a greater contribution.

And Labour believes the funds raised should be used to introduce a new lower 10p starting rate of tax - putting right a mistake made by the last government. This would mean a tax cut for 25 million people on middle and modest incomes struggling with the rising cost of living.

After supporting a Tory tax cut for millionaires, a failing economic plan, a VAT rise and a trebling of tuition fees, we will judge the Lib Dems on what they do, not what they say.

Chris Leslie is Labour's shadow financial secretary to the Treasury

Nick Clegg makes his keynote speech at the Liberal Democrat spring conference on March 10, 2013 in Brighton. Photograph: Getty Images.

Chris Leslie is chair of Labour's backbench Treasury committee.

Getty Images.
Show Hide image

Jeremy Corbyn challenged by Labour MPs to sack Ken Livingstone from defence review

Former mayor of London criticised at PLP meeting over comments on 7 July bombings. 

After Jeremy Corbyn's decision to give Labour MPs a free vote over air strikes in Syria, tonight's Parliamentary Labour Party (PLP) meeting was less fractious than it could have been. But one grandee was still moved to declare that the "ferocity" of the attacks on the leader made it the most "uplifting" he had attended.

Margaret Beckett, the former foreign secretary, told the meeting: "We cannot unite the party if the leader's office is determined to divide us." Several MPs said afterwards that many of those who shared Corbyn's opposition to air strikes believed he had mishandled the process by appealing to MPs over the heads of the shadow cabinet and then to members. David Winnick declared that those who favoured military action faced a "shakedown" and deselection by Momentum activists. "It is completely unacceptable. They are a party within a party," he said of the Corbyn-aligned group. The "huge applause" for Hilary Benn, who favours intervention, far outweighed that for the leader, I'm told. 

There was also loud agreement when Jack Dromey condemned Ken Livingstone for blaming Tony Blair's invasion of Iraq for the 7 July 2005 bombings. Along with Angela Smith MP, Dromey demanded that Livingstone be sacked as the co-chair of Labour's defence review. Significantly, Benn said aftewards that he agreed with every word Dromey had said. Corbyn's office has previously said that it is up to the NEC, not the leader, whether the former London mayor holds the position. In reference to 7 July, an aide repeated Corbyn's statement that he preferred to "remember the brilliant words Ken used after 7/7". 

As on previous occasions, MPs complained that the leader failed to answer the questions that were put to him. A shadow minister told me that he "dodged" one on whether he believed the UK should end air strikes against Isis in Iraq. In reference to Syria, a Corbyn aide said afterwards that "There was significant support for the leader. There was a wide debate, with people speaking on both sides of the arguments." After David Cameron's decision to call a vote on air strikes for Wednesday, leaving only a day for debate, the number of Labour MPs backing intervention is likely to fall. One shadow minister told me that as few as 40-50 may back the government, though most expect the total to be closer to the original figure of 99. 

At the end of another remarkable day in Labour's history, a Corbyn aide concluded: "It was always going to be a bumpy ride when you have a leader who was elected by a large number outside parliament but whose support in the PLP is quite limited. There are a small number who find it hard to come to terms with that result."

George Eaton is political editor of the New Statesman.