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London mansion tax to pay for Scottish nurses

The Labour party said that its proposed mansion tax would pay for 1,000 extra nurses in Scotland. As the tax will be payable almost exclusively in London, this had led to allegations that London is to be taxed to fund the increasingly independent Scotland.

The mansion tax would be levied on homes worth more than £2 million. In Scotland, the tax would raise just £15m as against £1,200m in England, predominantly in London. There are currently about 100,000 homes worth more than £2 million.

The tax is being criticised by an increasing number of leading Labour figures including former ministers Charles Clarke, Tessa Jowell and Margaret Hodge, in addition to London MP David Lammy.

A subsequent anonymous survey said that 44% of Labour MPs do not support the mansion tax. 39% of Labour MPs prefer to introduce new higher council tax bands instead.

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