The Conservatives used an Opposition Day debate within the Home of Commons yesterday to resume their pledge to abolish stamp responsibility and name on the Treasury to stipulate plans to get the housing market transferring.
Conservative Shadow Chancellor Sir Mel Stride mentioned the federal government may do far more to spice up property transactions, describing stamp responsibility reform as central to that intention.
He informed MPs: “We all know that we have to have accountable tax cuts. Meaning they have to be funded and they should lean into development, and that’s the reason we’ve introduced that, have been we in authorities, we might be abolishing stamp responsibility on major residences.”
Sir Mel referred to as stamp responsibility “one of many worst taxes in our tax system”, arguing that it “stands in the best way of youthful folks getting onto the housing ladder”. Citing former Institute for Fiscal Research director Paul Johnson, he mentioned the levy “gums up” the housing market by discouraging folks from transferring for work or higher alternatives.
Nonetheless, chief secretary to the Treasury James Murray dismissed the proposal as “half-baked”, evaluating it to insurance policies launched underneath former prime minister Liz Truss. He famous that stamp responsibility raised round £13.9bn for the Treasury in 2024–25.
Murray acknowledged that stamp responsibility was unpopular however mentioned it might be for chancellor Rachel Reeves to set out her tax and spending plans within the Price range on 26 November.
Liberal Democrat deputy chief Daisy Cooper additionally described stamp responsibility as having “all of the hallmarks of a foul tax”, however mentioned it generated important income that will have to be changed elsewhere.
In England, patrons pay stamp responsibility on houses costing greater than £125,000, with charges beginning at 2%, whereas first-time patrons are exempt as much as £300,000 and obtain reduction on purchases as much as £500,000.
The Conservative movement referred to as on the federal government to cut back public spending to fund the abolition of stamp responsibility land tax on major residences bought by UK residents. MPs rejected the proposal by 329 votes to 103, a majority of 226.
Rachel Reeves urged to match Kemi Badenoch by chopping stamp responsibility in Price range
