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Lib-Dems revolt at Cable's tax on £1million homes
Nicholas Cecil, Deputy Political Editor22 Sep 2009
Liberal Democrat leaders Nick Clegg and Vince Cable were today hit with an open revolt against their radical tax and public spending plans.
The party's conference in Bournemouth descended into infighting over a series of issues including a "mansion tax", moves to ditch the party's pledge to abolish university tuition fees and means testing child benefit. Angry recriminations flew over the announcement yesterday of the proposed levy on homes worth more than £1million.
One senior MP reportedly lambasted it as "complete codswallop" and another as "suicidal".
The Lib-Dem communities and local government spokeswoman, Julia Goldsworthy, whose brief includes town halls that would have to collect the tax, was said to have been kept in the dark over the announcement. Left-wing MP Steve Webb, the party's work and pensions spokesman, also appeared to voice concerns over dire warnings by Mr Cable, the Treasury spokesman, and Mr Clegg, the party leader, who has raised the prospect of "savage" cuts in public spending.
"I think we have overdone the despair," Mr Webb told delegates. "Doom and gloom does not inspire and motivate people. People want it straight but they also want hope."
He warned of alienating voters with alarming forecasts of cuts and flatly rejected the idea floated days ago that child benefit should be means-tested.
But Mr Clegg's chief-of-staff, Danny Alexander, defended the party's Fresh Start for Britain blueprint and warned that the Lib-Dem economic plan must be "economically credible". He said: "We must not make any firm commitment for the next Parliament unless we are certain it can be paid for."
Evan Harris, MP for Oxford West and Abingdon and of the party's federal policy committee, warned Mr Cable and Mr Clegg to listen to activists. He has spoken out in defence of keeping the policy on abolishing university tuition fees. Today he said: "Good Liberal Democrat leaders only become great leaders when they learn that the party makes the policy."
The growing rows risk providing a difficult backdrop to Mr Clegg's speech tomorrow. However, some believe it could help define him as a strong leader willing to take on his party.
The backlash against the mansion tax, which would be 0.5 per cent on a home's value above £1million, is likely to damage Mr Cable's reputation as an economic guru. The former chief economist for Shell has been ahead of the game on economic problems but was left having to explain how the tax would work after Mr Alexander struggled with the details.
Mr Cable also sparked confusion over policy on Crossrail by warning against being "mesmerised" by big projects.
Reader views (6)
Oh dear! Poor Vince has really dug himself into a hole on this one. WHY he seems to have dropped Local Income Tax to replace Council Tax I do not know BUT I have another suggestion.
Would it be unreasonable to expect pensioners and early retirees on incomes of over (say) £75000 to pay National Insurance Contributions. A tax they could opt out of by taking out private medical insurance.
OR is it me that`s off-beam? What do your readers think?
- Roy, Billericay Essex, 23/09/2009 07:38
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It should be income tax (with public sector cuts) that pays for a threshold increase to take the poorest families out of income tax. Many older people live in homes that may be a million now but their incomes/pensions are not a million. Is it fair they should be punished? The Tories would cut through the Libs like melted butter in high property areas. Time for reflection Dr Cable.
- Andrew, London, 23/09/2009 00:39
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After 12 soul destroying years of stealth taxes from Gordon Brown, what on earth make Vince Cable think that the electorate have an appetite for yet more taxes? Why punish high achievers?
- Ex-Pat David, Cape Town, South Africa, 22/09/2009 18:28
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A monumental miscalculation by the normally astute Vince Cable. All he has achieved is to stamp the LibDem concept "we will tax success" into the minds of voters who aspire to succeed! Great selling point? No deal - he's made them unelectable at a stroke.
- Ex-Pat David, Cape Town, South Africa, 22/09/2009 18:20
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It does not matter what the Liberal idiots say.they will never be a governing party....so they can wamp on as much as they like...Who's gonna vote for this codswallop of a party...
- Themanoftruth, United Kingdom, 22/09/2009 18:15
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As it is highly unlikely that the Lib Dems will ever form a government - what's all the fuss about?
- Phil, London, UK, 22/09/2009 15:54
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