MPs’ fury at ‘crazy’ Tory plans for a mansion tax and raid on pensions

TORY MPs last night urged Sajid Javid to ditch ‘crazy’ plans for a mansion tax.

The Chancellor faced a backlash after reports he is considering a raid on the better-off in next month’s Budget.

Treasury officials have also held talks on plans to halve the level of pension tax relief for higher rate earners.

The moves are being considered to raise cash to reform stamp duty and fund investment in public services.

Government sources last night also confirmed the Treasury is looking to scrap entrepreneur’s relief –a £2.5billion tax break skewed heavily towards the well-off.

A mansion tax would be a major U-turn after the Conservatives savaged Labour leader Ed Miliband’s similar proposal to hit owners of homes over £2million in 2015.

Senior Tories warned ministers not to alienate voters.

Former Tory Cabinet minister Sir John Redwood said: ‘ People voted for growth, opportunity and rewards for success. They didn’t vote for a diluted version of Corbyn’s tax raids on the rich.’

Lucy Allan added: ‘Penalty for endeavour is not what new Conservative voters were looking for.’

It is unclear whether a mansion levy would be collected through a higher council tax band or stand alone charge. One ex-minister suggested the plan was Treasury ‘kite flying’ and would almost certainly be ditched before the Budget on March 11 due to its toxic potential. He said: ‘The whole idea is crazy and wrong.’

Ministers have also dusted off proposals to slash pension tax relief for higher rate taxpayers from 40 per cent to 20 per cent. But it is likely to be resisted by Tory MPs, who see it as an attack on saving.

However, ministers are said to be pressing ahead with axing entrepreneur’s relief, which allows business owners to pay just ten per cent capital gains tax when they sell up.

Analysis is said to show the relief mostly benefits the welloff and does not motivate people to set up in business.

IS there a politician more infatuated with the idea of what the French call les grands projets than Boris Johnson? he called for a bridge between Britain and France. he wanted to build an airport in the Thames Estuary dubbed ‘Boris island’.

This week the Prime Minister will give the green light to the biggest infrastructure revolution since the Victorian era.

hs2 will get the go-ahead. At £100billion the flagship rail project is eye-wateringly expensive. But it will help tackle chronic overcrowding and endless cancellations on Britain’s dysfunctional railways, while creating jobs and rebooting industry.

Meanwhile, the bold plan to create ten new zero- tariff ‘ free ports’ should turbocharge the long-overlooked regions, making them magnets of opportunity.

if done properly, Boris’s blueprint will boost national prosperity while ‘levelling up’ the North and Midlands – fulfilling his promise to voters who swept him into No10.

A word of caution, though. By all means, reward new Tory voters. But don’t alienate Middle England.

Proposals to axe pension relief and introduce a so-called mansion tax, which would clobber too many families, are misguided. it’s distinctly un-Conservative to punish hard work and aspiration.

if the electorate had wanted people taxed till the pips squeaked, they’d have backed Jeremy Corbyn.

Of course, this is a classic pre-Budget tactic to test the waters (and appeal to the working class). But a note to the Tories: threatening your core vote in the name of political posturing will only erode the goodwill so hard won in December.