A squirming Treasury minister was slammed for his “obtuse response to a reasonable question” about Labour’s looming tax hikes.
Pensions minister Torsten Bell told Sky News “I’m a newish MP, but I’m not an idiot” before adding: “At some point there will be a learning curve and we won’t just go through rehearsing each individual question”.
Mr Bell had been asked about Chancellor Rachel Reeves examining replacing stamp duty with a new property tax.
In a spiky exchange, Sky News presenter Wilfred Frost asked: “Would it make sense to reform stamp duty and replace it with an annual property tax?”
Mr Bell responded: “I’m a newish MP but I’m not an idiot. You know that tax decisions are made by the Chancellor. I’m not going to start speculating on individual taxes because then you’ll ask me another three questions about other taxes.
“What I can say is this Government is going to get things being built again.” Mr Frost hit back: “I get that you’re not the Chancellor, but you’re a Treasury minister.”
The Pensions minister flew back: “Well, that’s another reason why I’m not going to start speculating about individual taxes. You will get the same answer that you ask any minister all the time and at some point there will be a learning curve and we won’t just go through rehearsing each individual question.
“What I am saying to you is this is a Government that is going to get houses built.”
Sky News host Mr Frost responded: “Fine, but it’s rather interesting the obtuse response to a reasonable question about the pros and cons of types of taxes rather than specifics.”
Stamp Duty is paid when purchasing a property over £125,000, but Ms Reeves is considering a simpler ‘national property tax’, paid when selling a house over £500,000.
The Treasury believes that while this new system would raise similar amounts to Stamp Duty, and be a more consistent source of revenue.
It would only affect around one in five house sales, compared to Stamp Duty applying to 60% of sales.
The Conservatives have warned that “the family home is next in the firing line” of tax-loving Labour.
Shadow Chancellor Mel Stride blasted: “This tax grab would punish families for aspiring to own their own home. Under Labour, nothing is safe. Your home, your job, your pension – the Chancellor has all of it in her sights.
“Rachel Reeves will tax your future to pay for her failure.”
The Treasury document examining a new council tax system is based on a report by the centre-right Onward think tank, which proposed that owners of property up to £500,000 pay rates of tax based on the value of their home.
The minimum annual charge would therefore be set at around £800 a year, with Onward adding that anyone who has paid stamp duty on their current property should be exempt to avoid double taxation.