HomeOwners Alliance logo

Sign up to our newsletter for the latest property news, tips & money saving offers

  • Moving home during coronavirus - Read latest advice

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.

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.”

 

– Copy Ends –

Notes to Editor

1. Table D3, page 108 of the Budget 2014 sets out the projected revenues raised.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293759/37630_Budget_2014_Web_Accessible.pdf

Current Receipts: OBR forecast (excerpt from Table D3 of the Budget 2014)

   

£ billion

Forecast

year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Stamp duty land tax 6.9 9.5 12.7 14.4 15.7 16.8 18.1
Tobacco duties 9.6 9.7 9.9 10.1 10.3 10.6 10.9

 

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:

 


Leave a comment




* required

No Comments

No comments yet.

Looking for fee free mortgage advice?

We’ve teamed up with the UK’s leading fee-free mortgage broker to provide you with expert advice.L&C Logo✓ UK’s leading fee free mortgage broker

✓ Compare 1000s of mortgages

✓ Fully qualified advisers

Find out more >

Compare conveyancing quotes in a few simple steps

Compare conveyancing quotes in a few simple steps

Simply complete our online form to receive instant quotes from quality assured solicitors and licensed conveyancers, ranked by best price, customer satisfaction rating and location.

Get Quotes Now >

Latest Tweets

  • HomeOwners Alliance
    If you've had an offer accepted on a #property then the next step in your #homebuying journey is to appoint a conve… https://t.co/sRC3LKCYRD

    01 June 2020

  • HomeOwners Alliance
    Government guidance states you are free to make or accept an offer or reserve a #property as normal. But be aware t… https://t.co/yWqnTyIK7S

    31 May 2020

  • Follow us on Twitter >

     

 
×

Sign up to our FREE fortnightly newsletter

For the latest news, advice and exclusive money saving offers.