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TAXING TIMES

Budget 2020: Tories eye ‘mansion tax’ and raid on pensions

BORIS Johnson is eyeing up plans for a mansions tax on huge homes and a raid on pensions tax relief, it's been reported.

In order to fund more giveaways in the upcoming Budget, the Tories are thinking of how to rake in extra cash.

 Sajid Javid's Treasury team is looking at ways to raise funding ahead of the Budget
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Sajid Javid's Treasury team is looking at ways to raise funding ahead of the BudgetCredit: Steve Back 2020

The Daily Telegraph claimed owners of big homes could be asked to pay more tax, and is an idea being discussed in the Treasury and No10.

This could be through an additional higher band of council tax for huge homes.

And cuts to pensions giveaways are also on the cards too for those earning more than £50,000 a year, the Financial Times reported.

It was also claimed Treasury officials have privately compiled a list of other taxes which could rise - such as capital gains tax, raids on businesses and inheritance tax to pay for more public spending.

Treasury sources said the reports were "complete speculation" and pointed out the Budget was still five weeks away.

The Budget is set for March 11 and will be Sajid Javid's first one as Chancellor.

Any major tax raids would be sure to alienate traditional Tory voters.

Boris Johnson has been keen to show Northern voters that backed him in last year's General Election that the party hasn't forgotten them.

Already he's brought forward plans forward for a huge hike to the minimum wage to come in April.

John O’Connell, chief executive of the TaxPayers’ Alliance, says: “It seems to be a misunderstanding of what the Tories’ new voters were looking for.

"They may be new converts to the message, but they still expect the ­Conservatives to be the ones backing them when they succeed.

"Levelling up doesn’t mean cutting other people down."

 The Tories could aim for an extra council tax band on higher earners
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The Tories could aim for an extra council tax band on higher earnersCredit: Getty - Contributor

Another top Tory said: "It is ridiculous. They need tax cuts, they need to ­promote growth.

"They have got to get rid of this idea that people believe in the politics of jealousy. If you want to tax the rich out of the country you vote Labour or Liberal Democrat.

"If you are happy for people to get on in the world and make a good living you vote Conservative."

A Treasury spokesperson said: "While we keep all aspects of the tax system under review, we do not speculate ahead of the Budget."

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