/Boris Johnson shelves plans for mansion tax on owners of high-value homes

Boris Johnson shelves plans for mansion tax on owners of high-value homes

Boris Johnson ‘shelves plans for mansion tax on owners of high-value homes’ after backlash from Tory MPs and grassroot supporters

  • The tax on high-value properties was due to be rolled out in next month’s Budget 
  • Rishi Sunak, Sajid Javid’s successor, is ‘highly unlikely’ to go ahead with policy
  • The PM is believed to have been spooked by a backbench revolt over wealth tax 

Boris Johnson‘s has frozen controversial plans to slap expensive homes with a ‘mansion tax’ amid fears of a Tory backbench revolt.   

The tax on high-value properties was due to be rolled out in next month’s Budget to help fund the Prime Minister’s promise to ‘level-up’ parts of the country starved of investment. 

But following the resignation of Sajid Javid as Chancellor, who was understood to have been wavering on the policy, it has now been shelved.

Rishi Sunak, Mr Javid’s 39-year-old successor in the Treasury, is ‘highly unlikely’ to include the wealth tax in the Budget, a government source said.

Boris Johnson and new Chancellor Rishi Sunak in Friday's cabinet meeting - the pair are 'highly unlikely' to announce plans of a mansion tax in the Budget

Boris Johnson and new Chancellor Rishi Sunak in Friday's cabinet meeting - the pair are 'highly unlikely' to announce plans of a mansion tax in the Budget

Boris Johnson and new Chancellor Rishi Sunak in Friday’s cabinet meeting – the pair are ‘highly unlikely’ to announce plans of a mansion tax in the Budget

Following the resignation of Sajid Javid as Chancellor, who was understood to have been shaky about the policy, the mansion tax has now been shelved.

Following the resignation of Sajid Javid as Chancellor, who was understood to have been shaky about the policy, the mansion tax has now been shelved.

Following the resignation of Sajid Javid as Chancellor, who was understood to have been shaky about the policy, the mansion tax has now been shelved.

The government’s economic agenda will be driven by the PM- and his top strategist Dominic Cummings – following Thursday’s reshuffle which saw the Chancellor’s independence watered-down by a new joint Number 10 and 11 team of advisers.   

And the PM has personally ‘cooled’ on the idea of imposing a mansion tax, a source told the Sunday Telegraph, meaning Mr Sunak will almost certainly fall into line. 

Mr Johnson boasts an 80-seat majority and massive personal mandate, but is believed to have been spooked by a big Conservative backlash to the plans.

Before Mr Javid quit after being told he could stay only if he sacked his entire team of advisers, he was warned about the rebellion which would meet such tax plans. 

Sir Graham Brady, the chair of the powerful 1922 committee of Tory MPs, had a meeting with the then Chancellor to impress the anger about the mooted mansion tax, according to the newspaper.

The mansion tax, which has also infuriated rank-and-file party members because it is a radical departure from preferred tax-cutting policies, is believe to have been the brainchild of Dominic Cummings

The mansion tax, which has also infuriated rank-and-file party members because it is a radical departure from preferred tax-cutting policies, is believe to have been the brainchild of Dominic Cummings

The mansion tax, which has also infuriated rank-and-file party members because it is a radical departure from preferred tax-cutting policies, is believe to have been the brainchild of Dominic Cummings

The mansion tax, which has also infuriated rank-and-file party members because it is a radical departure from preferred tax-cutting policies, is believe to have been the brainchild of Mr Cummings.

Another policy understood to be mothballed is a revaluation of all homes, which could have hiked council tax bills. 

Instead, the Budget could include a more wide-ranging inheritance tax. 

The Budget was scheduled for March 11, but with the new Treasury minister’s given less than a month to thrash together their spending plans, it could be postponed.

Today, Transport Secretary Grant Shapps appeared to signal it could be delayed. 

He told Sky’s Sophy Ridge: ‘I know the Budget plans are well advanced but I also know that Rishi Sunak, the new chancellor, may want time. 

‘I haven’t heard whether the date in March is confirmed as yet. He’s probably looking at it this week I should think, so I’ll leave it to the Treasury to announce that.’ 

Advertisement

Original Source