The Liberal Democrat’s conference proposal to introduce a tax on all properties valued at £1 million and over has been criticised by a London estate agency firm.

James Hyman, partner for residential sales at Cluttons, said Vince Cable’s so-called ‘Mansion Tax’ would be disastrous for the wider economy.

He said: “The impact of the Liberal Democrats’ proposed ‘Mansion Tax’ on the wider economy would be significant alongside the new 50% top tax band on high income earners which is being introduced in April.