According to Andrew Rawnsley in today’s Observer, David Cameron has vetoed the introduction of a mansion tax so as to try and avert a defeat for Boris Johnson in May’s Mayoral elections in London:

“The Lib Dems are not going to get their mansion tax and probably knew from the start that the Tories were unlikely to be persuadable. George Osborne could see the intellectual case for taxing wealth via property and some Treasury officials were attracted to the simplicity of a tax that would be hard to avoid. The chancellor might have been willing to cut a deal with the Lib Dems, but the prime minister was not. David Cameron feared the reaction of Tory MPs and the Tory core vote, among whom are rather a lot of people living in the size of property that would attract the tax.  …  He also had a rather cruder, short-term electoral consideration that has been surprisingly overlooked in all the debate about the pros and cons of a mansion tax. Many of the homes worth £2 million or more are concentrated in London. There is an election for mayor of the capital coming up very soon. David Cameron did not want to do anything that could be said to jeopardise Boris Johnson’s chances of beating Ken Livingstone. The first thing that a defeated Boris would do would be to try to get back into the Commons, which is the last place that Mr Cameron wants to see his fellow old Etonian. A beaten Boris will be bad enough for the Tories; a martyred Boris able to blame his defeat on the prime minister and the chancellor would be much worse for them. So the mansion tax was blocked.”

 Good to know that personal intra-Party considerations trump everything else.

 

 

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