Rachel Reeves' class war plan to hammer wealthy homeowners with a new mansion tax was torn apart by ex-Bank of England governor Mervyn King today.
Baron King lashed out after it was revealed the Chancellor Rachel Reeves could hit those with homes worth more than £2million with a punitive levy in the Budget next month.
Under the proposals, the owners of properties worth £2million and above would face a charge of 1 per cent of the amount by which the property exceeds that value – meaning that owners of a £3million property would face a bill of £10,000 every year.
Speaking to Sky News' Sunday Morning with Trevor Phillips the peer, who ran the Bank between 2003 and 2013 said the UK needed more than plans 'written on the back of a fag packet'.
'That is not coherent tax strategy and you could do a great deal by thinking it though first,' he said.
'Property taxes are an interaction between stamp duty, council tax, capital gains tax, inheritance tax.
'You don’t solve that problem by just adding another wealth tax to it.'