Conservative conference: Cameron rules out 'mansion tax'

[dutchman]

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.

"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.

[dutchman]

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."

Yet he was happy to levy a 'bedroom tax' of up to 25% on those with the lowest incomes living in social housing

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

I'm equally certain they won't.