Johnson makes U-turn on mansion tax plans after heartlands backlash

first_imgHome » News » Housing Market » Johnson makes U-turn on mansion tax plans after heartlands backlash previous nextHousing MarketJohnson makes U-turn on mansion tax plans after heartlands backlashPrime Minister and his new Chancellor Rishi Sunak say measure is very unlikely to be included in the delayed budget.Nigel Lewis17th February 20201 Comment1,507 Views Boris Johnson has scrapped government plans to introduce a mansion tax after a backlash from his party’s traditional bricks-and-mortar owning heartland.Over the weekend the new Chancellor Rishi Sunak said it was ‘highly unlikely’ that the measure would proceed, while the Prime Minister is said to have ‘cooled’ on the idea despite heralding it last week as a key policy to enable the UK to be ‘levelled up’ economically.But another reason for the ditching of the idea has been forming over the weekend among political commentators; that the mansion tax proposals were part of a plan by Johnson and his chief aide Dominic Cummings to oust Sajid Javid from No.11 if he didn’t go along with their plans to downgrade the power of HM Treasury.The idea was clearly not Javid’s. As property industry figure Trevor Abrahmsohn (left) found out after attending a private meeting recently with the now former Chancellor, he is unlikely to have adopted what has been in the past a Labour policy.“It was evident that he was a ‘fiscal pragmatist’, i.e. he believed in the notion that taxes are designed to raise as much money as possible for the Treasury, rather than being a cunning, socialist device to ‘redistribute’ wealth or penalise entrepreneurs,” he says.Also, any form of mansion tax is not a Conservative vote winner. Research last week by The Telegraph showed that hundreds of staunch Conservative constituencies would see high proportions of home owners paying the additional tax.Within London between 28% and 65% of homes are over £1 million while outside the capital in commuter belt towns such as Guildford or upmarket areas of Manchester, up to 24% of homes would be deemed ‘mansions’ based on price. Rishi Sunak Boris Johnson mansion tax mansion tax Trevor Abrahmsohn February 17, 2020Nigel LewisOne commentAndrew Stanton, CEO Proptech-PR Real Estate Influencer & Journalist CEO Proptech-PR Real Estate Influencer & Journalist 17th February 2020 at 1:56 pmGood news on the Mansion Tax, but bad news if the budget gets delayed past 11th of March. The market is beginning to be a favourable one for agents, the last thing we need is a delay on whether stamp duty will get an overhaul.Uncertainty, can soon squeeze life out of a housing market, let us hope Rishi Sunak does not take too long to unleash what he has hidden away in his little red budget brief-case. The word is he is a spender not a keeper, so maybe some pennies may wash down to some, though it is more likely stamp duty will remain fundamentally as it is for now.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more