Clegg admits mansion tax would hit the capital hardest

A mansion tax on big homes would hit London and the South-East much more heavily than the North of England, Nick Clegg has confirmed.

The Deputy Prime Minister admitted it would mean more tax on the south and relatively less on the North.

“Of course it would, which is partly why it is very controversial that 80-90 per cent of all the mansions that are £2 million or more are in, I should think, a few areas in London and the South-East, and maybe a few places in Cheshire,” he told a Newcastle newspaper.

Pre-Budget negotiations last night failed to strike a deal after Coalition arguments over taxes aimed at the wealthy. Further talks will be held this week between David Cameron, Mr Clegg, George Osborne and Danny Alexander.

The Chancellor is against a mansion tax but is keen to abolish the 50p rate on high earners. Mr Clegg wants them to pay at least 30 per cent tax.