Local Labour MP Tom Blenkinsop is backing calls by Ed Miliband for a fairer tax system that would see the introduction of a ‘mansion tax’ on properties worth over £2m and using the money raised to reintroduce a 10p rate of tax.
“I very much welcome this proposal by Ed Miliband as it clearly sets out where Labour’s priorities lie: backing low and middle earners who are seeing their living standards squeezed and are struggling with the bills at the end of the month. The proposal would put right the mistake made by scrapping it and put Labour where it should always have been, on the side of working people.
“As well as cancelling the millionaire’s tax cut and the tax credit cuts this April, Labour would tax houses worth over £2 million and we would use the money raised by a mansion tax to reintroduce a 10 pence starting rate of tax which would benefit almost 1 million taxpayers in the North East.
“It is clear policies of recent years have been failing to help those who are working hard or young people who are unable to find employment. The current Government have their priorities wrong with their tax cut for millionaires. A temporary cut in VAT to boost economic growth or action on train fares, tackling “unfair” bank charges and capping interest on payday loans are moves that would genuinely help my constituents and only Labour is looking at those issues seriously.”