Mansion tax idea is incoherent, former Bank of England boss warns Reeves
Controversial mansion tax is ‘incoherent’, Rachel Reeves warned
- Mervyn King, former Bank of England governor, criticised the government's tax strategy as incoherent, stating problems cannot be resolved by simply adding more wealth taxes.
- The Chancellor is reportedly considering a 'mansion tax' on properties valued at £2m or more, with an annual charge of 1% on the amount exceeding that threshold.
- Several senior cabinet members, including David Lammy and Shabana Mahmood, are understood to oppose such wealth taxes due to concerns about their impact.
- Discussions within government also include potential changes to the 45p top rate of income tax, which some sources suggest would be a popular move within the party.
- Rachel Reeves is currently leading a UK delegation to Saudi Arabia to progress a trade deal with the Gulf Co-operation Council and attend the Future Investment Initiative.