Chancellor’s dirty little budget secret: Addicted to stamp duty as takings set to triple over next 5 years – and doubling that of tobacco
This is what we didn’t hear the Chancellor highlight during his budget speech to Parliament – how the government is addicted to stamp duty.
March 19, 2014
This is what we didn’t hear the Chancellor highlight during his budget speech to Parliament – how the government is addicted to stamp duty. Government collected £6.9 billion in stamp duty in 2012-13, and will double this by 2015/16; and triple its takings by 2018-19 to a whooping £18.1 billion.
By 2018, this will be nearly twice the amount raised from tobacco (current takings are less than tobacco). Chancellor boasted in his speech that he was raising tax on tobacco, but it is really the homeowner that he is milking. Government is addicted to stamp duty.
Paula Higgins, chief executive of the HomeOwners Alliance, a consumer group for homeowners and those who aspire to own, said:
“No wonder the Chancellor chickened out on much needed reform of stamp duty, or indeed any changes to acknowledge rising house prices. Stamp duty will treble over the next 5 years. The housing market is being hammered as the government is addicted to stamp duty. The astonishing rise in stamp duty has resulted in government turning a blind eye to hardworking families.
“Government needs to take a radically different approach to stamp duty to make it fairer on homeowners and to help fix the dysfunctional housing market. As a minimum, take the pressure of the majority of homebuyers looking for a roof over their heads by raising the level at which stamp duty is charged.”
Commenting on Help to Buy and new housing, Paula said:
” Britain is in desperate need of new homes. We need to get cracking on garden towns, instead of just repackaging. Owning a home is becoming a privilege that only the most affluent can afford – we need to think big and act now. Help to Buy should deliver more homes and get families on the housing ladder. Mortgage lenders and government must ensure that we are not causing these new homeowners future problems when interest rates start to rise.”
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Notes to Editor
1. Table D3, page 108 of the Budget 2014 sets out the projected revenues raised.
Current Receipts: OBR forecast (excerpt from Table D3 of the Budget 2014)
|Stamp duty land tax||6.9||9.5||12.7||14.4||15.7||16.8||18.1|
2. Our previous publications on stamp duty include: Stamping on Aspiration: the rising cost of stamp duty, and A fairer rate of stamp duty for homeowners.
About the HomeOwners Alliance (www.hoa.org.uk)
The HomeOwners Alliance champions the interests of Britain’s homeowners and aspiring homeowners. We are a consumer group providing helpful advice and services and acting as the voice of the homeowner in the media, lobbying for the interests of homeowners and aspiring homeowners in government, and campaigning against bad practices in industry. We directly engage with government and the media by conducting independent research and publishing reports that promote and champion the interests of homeowners. Previous publications include:
- The Death of a Dream – the crisis of homeownership in the UK
- On the Edge – 300,000 interest-only mortgage holders set to lose their home
- Stamping on Aspiration – The astonishing impact of stamp duty on homeowners and the housing market
- The Stresses of Buying and Owning a Home