Seven out of 10 MPs believed the expansion of council tax bands would be more effective than a mansion tax with two-fifths of Labour’s MPs in favour, despite a mansion tax being a leading policy in its manifesto.
The majority (89%) of the Liberal Democrat MPs surveyed also prefer additional council tax bands to a mansion tax, as did 92% of Conservative MPs.
Ian Fletcher, director of policy at the BPF, said: “This poll shows that a full council tax revaluation rightly commands widespread political support, particularly across the Labour party, and that the majority of MPs recognise that basing council tax on 1991 house prices is simply unsustainable.
The BPF said that since 1991 house price inflation, which has varied significantly, ranges from 160% to over 400% across England’s regions.
Fletcher labelled the mansion tax idea as a ‘political gimmick’ and claimed a revaluation of the council tax bands would restore fairness to the system and would be better for the country as a whole.
Labour leader Ed Miliband’s proposal is to charge the owners of properties worth over £2m an additional annual levy.
The BPF has argued that this tax would be unfairly concentrated on London and could act as a deterrent to investment in building in the UK.
“It is particularly striking to see the level of support from MPs for reform across the Labour and Liberal parties, and that a number prefer it to a mansion tax,” added Fletcher.
“From the results of this poll the mandate for a mansion tax is very weak, even amongst those parties that have pushed it, and the right course of action would be to reform council tax.”
