L&G boss hits out at mansion tax plans

Nigel Wilson, CEO of Legal & General, has said that Ed Miliband’s plans for a levy on £2m homes is “poor economics” and will “punish” families who have saved hard for a property. Mr Wilson said: “A well-functioning housing market needs people to move. We’re already seeing the threat of a mansion tax slowing down sales at the upper end of the market – and this has repercussions down the chain. What may well happen is that fewer top-end houses get built, more homeowners stay put, and ultimately fewer opportunities exist for first-time buyers.” He also warned that the policy is unlikely to raise even a tenth of the £1.2bn that Labour says it will as homeowners are likely to find legitimate ways of avoiding it.

Rebellion over mansion tax

The Times reports that Labour councillors are rebelling against Ed Miliband’s plans to impose a “mansion tax”. Hammersmith and Fulham Council has officially voted to oppose the levy, a motion backed by the ruling Labour group, warning that the plans would lead to “many local people being forced to move out of the borough”. Elsewhere, Emma Dent Coad, leader of the Labour group on Kensington and Chelsea council, said that the well-off should pay more property tax, but added she was opposed to the mansion tax idea. “We’re rebelling, because it’s bonkers. Our minds are open but we’re not happy with what’s being proposed at the moment,” she added.