Vince Cable calls for mansion tax on valuable properties

Vince Cable has said that wealthy homeowners should have to pay their fair share of the taxes and that there should be a mansion tax imposed on them.

He added that many people in the Coalition believe that the 50% rate of taxation can only be dropped if wealthy homeowners are made to pay a mansion tax.

According to the Business Secretary, the coalition has agreed that more focus needs to be placed on taxing the rich so that all people in the UK start to pay their share of the tax load.

Cable spoke about the increase in taxes for the rich on the Today programme broadcast on BBC Radio 4 this week and also criticised the system that is in place right now as unjustly biased against the poor and stated that with higher taxes on mansions and council taxes the government could bring in more money.

He especially had words for those who have large properties that sit in Britain but have owners that live abroad and therefore they no tax or very little taxes on them. He also mentioned the situations in which those with mansions pay the same amount in council tax as families that live within the same council with average sized homes.

In the past, Cable has been a large supporter of placing a mansion tax on homes that are valued at over £2m. If the changes in policy were to occur it is believed that public finances could be increased by as much as £1.7b with the largest amount of funds coming from the wealthy that live in the South East and in London. Cable also stated that Liberal Democrats are negotiating with Conservative counterparts to create new and fair ways that the wealthy should be taxed.