Anger at Liberal Democrats for land tax on middle-class
LIB DEM plans to hit middle-class families with an annual tax on the value of the land on which their houses are built came under fire yesterday.
Business Secretary Vince Cable is backing the policy, which he argues would address the unequal “accumulation of wealth” in land and property across society.
Supporters of a land tax, which Mr Cable claims is being discussed at high level, say that an annual levy on the rental value of land would be fairer than levying charges on the sale of homes or on the purchase of goods through VAT.
However, a Tory source said yesterday: “These plans won’t see the light of day. They’re Lib Dem folly.”