Owners of homes worth £1million or more should pay a 0.5% annual level to raise money to help low-paid workers, according to Liberal Democrat treasury spokesman Vince Cable.
Speaking at the party’s conference in Bournemouth, Cable called for a new property tax that could allow the party to reduce taxation for people at the lower end of the pay scales.
The plan is that homeowners would pay 0.5% on the value of their home above £1million.
However, speaking to the BBC later on in the day, it emerged that that party isn’t clear if the tax would be based on house sales, new valuations or Land Registry figures – nor if it would be a permanent move or a short-term measure to raise funds.
Critics have raised concerns over the proposals, including warning that pensioners living in homes now worth more than £1million might find themselves unable to meet the cost of such a tax.
What do you think of the Lib Dem suggestions? Would this tax be fair or unfair? Do you agree with it as a short-term solution or think it should be brought it on an ongoing basis?