The Liberal Democrats have maintained their ability to promise people anything they want to hear irrespective of the facts.  The latest is the myth that a 'mansion tax' on the most valuable homes can pay for the first £10k of earnings being tax free.  In reality the paltry amount raised by the first policy raises barely a tenth of the cost of the second policy.

Key Points

• Following a revolt among MPs Clegg has raised the mansion tax threshold from £1m to £2m
• The Lib Dems have not been able to say how they can work out the value of people's homes that aren't being sold. Current sales figures show a small number of homes worth over £2m. Latest Land Registry figures only 86 properties in the whole of England and Wales were bought for £2m or more (July 2009). They claim they can raise almost £2 billion from this tax, 10% of the amount needed to raise the allowance.
• The Lib Dems claim that raising the personal allowance to £10,000 would cost £16.5 billion, however Treasury figures show this will in fact cost £22bn.
• The Lib Dems claim they can raise £5 billion from closing tax loop holes (if only that were so easy) however when pressed at their press conference they had to admit that this was an estimate based upon hunches.
• They also say they would raise £2.2bn from replacing air passenger duty with a plane tax. However Treasury figures show this switch would only raise £190 million.  It has also been overtaken by events as a new four band air passenger duty came into effect on 1st November so their figures are based upon a change from a tax that no longer exists.

Fiction not Action

Paul Smith, PPC for Bristol West said, "The Lib Dems continue to behave as a party with no chance of power promising anything that sounds good knowing that they will never be put to the test".

The headlines for these policies have been good but rather than robbing the rich to pay the poor the Lib Dems are making up fantasy taxes that don't add up and which give the impression of action when in reality they are just a fiction.