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12 March 2013

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.

By Chris Leslie

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:

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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.

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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