News from Sheffield Labour

Clegg’s Mansion Tax worth 1p a week to Sheffield households

Sheffield Attercliffe MP Clive Betts MP today revealed that Nick Clegg’s big idea – a ‘Mansion Tax’ – would benefit Sheffield households by just 1p a week.

Clive Betts said today: “In the last few years, Nick Clegg’s Liberal Democrats have been promising Sheffield people that they would introduce Local Income Tax to replace Council Tax and that this would significantly shift the tax balance from the poor to the rich.

“I have consistently challenged their policy as undeliverable. Eventually, this year, Nick Clegg has had to admit that he couldn’t deliver his promise.

“Then, at his Party Conference in September – and without consultation with even his local government spokesperson, Julia Goldsworthy – he made his headline-grabbing announcement of a ‘Mansion Tax’, with its promise of redistribution of the tax burden from the poor to the rich.

“I knew than that his figures didn’t stack up. There simply is no reliable information about the number of properties valued at more than £1m in the UK.

“I wrote to him in September asking him to provide the evidence to justify his claims. I’m not surprised that I haven’t had a reply.”

Clive Betts continued: “This week, Nick Clegg has announced his revised ‘Mansion Tax’ proposals – a 1% annual tax of the value over a £2m threshold.

“I’ve now calculated – and I’m being generous – that the proposed Mansion Tax would cut Sheffield household bills by a maximum 1p per week.

“I’m sure that there’ll be dancing in the streets – from Beighton to Burngreave – from Handsworth to Hillsborough – from the Manor to Mosborough – from Sothall to Southey Green about this massive redistribution of the tax burden!”

Clive Betts added: “Let’s put this Mansion Tax in context.

“Sheffield City Council’s income from council tax last year was £187m – the Mansion Tax would add just 0.0006%.

“Sheffield City Council’s gross revenue expenditure last year was £1,402m – the Mansion Tax would provide just a 0.00008% contribution to that.

“The income from the ‘Mansion Tax’ wouldn’t even pay for just one of the four additional employees earning £100,000+ which the Liberal Democrats on the City Council appointed in 2008/9, after promising to cut the numbers.”

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