Now Lib Dems explain their mansion tax

The Liberal Democrats are expected to reiterate their backing for a mansion tax when they meet for their annual conference in Glasgow starting tomorrow.

The proposal was initiated by the Liberal Democrats back in 2012 when that year's conference voted overwhelmingly for a motion which demanded an annual mansion tax on the excess value of residential properties over £2 million as a first step towards wealth taxation designed to reduce inequality.

While Labour got into difficulties at its conference when asked to describe the mechanism for collecting its version of the mansion tax - different spokespeople advocated collecting it only when a property was sold, or through valuations undertaken by the Land Registry or the Valuation Office Agency - the Liberal Democrats have already set out their ideas.

The new levy will be collected in the same way as council tax, via local authorities, then pooled nationally. Of course there will be appeals, and of course these will be heard properly, as they are currently with council tax says Danny Alexander, the Liberal Democrats' chief secretary to the treasury.

He says he wants a two-band structure - distinct from Labour, which advocates a four-band structure - with the bands up-rated annually to provide what he claims is self evidently a fair correction to an outdated system.