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Miliband defends 'Pure and Simple' tax after Klass criticism Myleene Klass tax jibe raised in Ed Miliband v David Cameron clash
(about 4 hours later)
Ed Miliband has hit back at singer Myleene Klass's criticism of Labour's "mansion tax" - by tweeting a six-point defence of the plan. David Cameron claimed at PM's questions that Ed Miliband had been "pasted by a pop star" after singer Myleene Klass's criticism of Labour's mansion tax.
The Hear'Say star claimed the tax would hit "little grannies" in modest London homes rather than the super-rich.The Hear'Say star claimed the tax would hit "little grannies" in modest London homes rather than the super-rich.
But with a play on her old band's biggest hit, the Labour leader replied: "Here's why our NHS needs a mansion tax. It's Pure and Simple." But the Labour leader insists the tax on homes worth £2m or more would help fund more NHS doctors and nurses.
He said the plan would raise £1.2bn and only apply to homes worth £2m or more. Accusing the PM of failing the NHS, he said: "If you've got big money you've got a friend in this prime minister."
Deputy Prime Minister Nick Clegg said the Liberal Democrats backed the proposal. But the Conservatives and UKIP are opposed to the idea, describing it as an attack on aspiration. He added: "If you haven't - you couldn't care less."
The war of words was sparked during a debate on ITV's The Agenda. The clash came just two days after Ms Klass attacked Mr Miliband on ITV's The Agenda for proposing a tax that conjured up thoughts of "Barbie-esque houses", when really the homes she claimed it would affect were often "like a garage".
Ms Klass argued that the term "mansion tax" conjured up thoughts of "Barbie-esque houses", yet the homes she claimed it would affect were often "like a garage". Six-point plan
Funding midwives
"When you do look at the people who are going to be suffering this tax, it's true a lot of them are grannies who have had these houses in their families for a long, long time," she said."When you do look at the people who are going to be suffering this tax, it's true a lot of them are grannies who have had these houses in their families for a long, long time," she said.
"The people who are the super-super-rich who are buying their houses for £140m, this is not necessarily going to affect them because they've got their tax rebates and their amazing accountants."The people who are the super-super-rich who are buying their houses for £140m, this is not necessarily going to affect them because they've got their tax rebates and their amazing accountants.
"It's going to be the little grannies that have lived in those houses for years and years.""It's going to be the little grannies that have lived in those houses for years and years."
But in a defence of the plan, Mr Miliband told his 358,000 followers on Twitter that the mansion tax would contribute £1.2bn towards Labour's goal of raising £2.5bn a year for the NHS to help pay for thousands more doctors, nurses, midwives and homecare workers. This prompted Mr Miliband to outline a six-point response on Twitter, using a play on Hear'Say's biggest hit: "Here's why our NHS needs a mansion tax. It's Pure and Simple."
The Labour leader returned to the subject during a rowdy PM's question time by asking Mr Cameron why he backed a bedroom tax, but was against a mansion tax.
The PM said a spare room subsidy was not available in the private sector, so should not be available in public sector accommodation.
No 'Klass-act'
This prompted Mr Miliband to ask if the PM believed a person living in a £140m Hyde Park penthouse should pay the same property tax as others.
Mr Cameron argued that his government had taken measures to address the differential, by putting up stamp duty and charging foreigners who invest, adding: "What you've had in the last week is a pasting from a pop star."
Mr Miliband hit back: "That's exactly what I expect from this prime minister - you only feel the pain of people struggling to find a £2m garage.
"We need a mansion tax because the NHS is going backwards on your watch."
The PM taunted Labour MPs by quipping: "They are certainly not seeing a Klass-act opposite."
He said there were more nurses and doctors under his government and accused Labour of missing NHS targets in Wales.
"This was the week when Myleene Klass wiped the floor with you on TV and this is the week when a poll in Scotland showed more people believe in the Loch Ness monster than in your leadership. The only problem for the Labour Party is you actually exist."
Earlier, Mr Miliband told his 358,000 followers on Twitter that the mansion tax would contribute £1.2bn towards Labour's goal of raising £2.5bn a year for the NHS to help pay for thousands more doctors, nurses, midwives and homecare workers.
It would also "guarantee that patients in England will wait no longer than one week for cancer tests and results by 2020", he said.It would also "guarantee that patients in England will wait no longer than one week for cancer tests and results by 2020", he said.
The Labour leader insisted the tax would only apply to homes worth £2m or more. Deputy Prime Minister Nick Clegg said he backed the plan, adding that treating higher value properties in the same banded way as lower value ones was a policy the Liberal Democrats "had advocated for a long time".
"The vast majority of houses, even in London, are worth far less than this," he said. UKIP are opposed to the idea, describing it as an attack on aspiration.
"The tax will apply to fewer than 0.5% of the homes in the country. And the £2m threshold will rise in line with the average rise in prices of high value properties over £2m - so the number of properties paying the tax will not increase."
He argued that people in high-value homes who earn less than £42,000 a year would have the right to defer the tax until their property changes hands.
And those owning properties worth £2-3m would pay an extra £250 a month through the new tax - the same as the average top band of council tax.
Lib Dem support
"We think that owners and investors in properties worth tens of millions of pounds should make a much bigger contribution," he said.
"And we will look at asking overseas owners of second homes in the UK to make a larger contribution than people living in their only home.
"It can't be right that the foreign buyer of a £140m flat in Westminster earlier this year will pay just £26 a week in council tax - the same as the average-value property in that council area."
Mr Miliband concluded that valuations would not be necessary for most properties as it would be clear which band they fell into.
Deputy Prime Minister Nick Clegg defended the mansion tax plan, saying treating higher value properties in the same banded way as lower value ones was a policy the Liberal Democrats "had advocated for a long time".
Fair's fair
Pressed on the issue during his regular "Call Clegg" LBC radio show, Mr Clegg said he disagreed with Ms Klass's assertion that the tax would only affect old people.
"I think she's wrong on that," he said. "She also suggests that all you can buy in London for £2m is a garage - that's some garage.
"All I'm saying is treat people fairly. Treat people in better off houses - or more valuable houses - in the same ways as we treat people in lower value houses."
Treasury minister Priti Patel said Labour could not hope to raise the £1.2bn earmarked from the tax for NHS spending on the basis of their current calculations.
"It is barely a month old, yet Labour's NHS promise has completely unravelled," she said. "You can't protect the NHS if you can't make the sums add up."