Eastleigh'S prospective Tory parliamentary candidate Conor Burns has warned that residents across the area face the threat of VAT on new homes and higher council tax bills under proposals put forward by the Liberal Democrats.

He said the Lib-Dems' "alternative budget" outlined plans for new taxes which would include placing VAT on newly-built houses - possibly adding £15,000 to the cost of the average new house in the south east.

They also proposed higher council taxes via new council tax bands - with households across the Eastleigh Borough Council area in Bands G and H facing a potential hike equivalent to 50 per cent of the Band D rate.

He said: "It is becoming increasingly difficult for young people and working families to get on the housing ladder, and I am concerned that Liberal Democrats are lobbying the government to impose yet more taxes on Eastleigh residents.

"We are already reeling from a large council tax rise brought about by the redistribution of funds away from Hampshire to Labour heartlands in the Midlands and north."

The Tory hopeful added: "Taxes on new homes will do nothing to stop over-development or the wrong houses being built in the wrong places - it will just act as an incentive for more higher-profit executive homes being built rather than more affordable housing.

"The last thing we need when council tax bills are already soaring are Liberal Democrats calling for punishing new council tax bands and tax hikes of up to 50 per cent."