Voters rightly want the Government to stop illegal – and reduce legal – migration, to reform the NHS and to take the firmest line against crime. But above all they want a strong economy that leaves more money in their pockets.
During the past four years, global instability hasn’t made this easy. The £400 billion spent to keep the economy afloat during the pandemic and the support given to deal with the energy price shock following Putin’s invasion of Ukraine have to be paid for. So while many of us would like tax cuts across the board, we know we must reduce the tax burden in a responsible way.
We need to prioritise tax cuts that will deliver the growth that makes everyone better off.
That’s why I believe the Government has to cut one of the most counter-productive and anti-growth taxes: stamp duty. It traps people in homes they want to move from and makes the elderly reluctant to downsize, which in turn leaves younger families in smaller houses.
Senior Conservative MP and former Housing Secretary Robert Jenrick has written in The Mail on Sunday stamp duty should be cut
Mr Jenrick argues stamp duty traps people in homes they want to move from and makes the elderly reluctant to downsize, which in turn leaves younger families in smaller houses
Rishi Sunak’s team are finalising their March 6 Budget, which will be focused on some form of tax cuts
Stamp duty damages productivity as it deters housebuilding and makes it harder for people to move to a different area to take better jobs. And fewer people moving homes reduces overall economic activity – for example, the work of decorators. For every 100,000 housing transactions, there is a net impact just shy of £1 billion.
So a stamp duty cut would give a much-needed stimulus to the economy. Unlike other tax cuts that take time to reap dividends, it would create an immediate feel-good factor.
Ministers initiated a stamp duty holiday during the pandemic which kick-started activity for millions of businesses. Since then, the number of property transactions has dropped by roughly 20 per cent and housing starts are historically low.
The Chancellor has a golden opportunity to remind voters that the Tories are the party that’s on the side of those who want to get on in life.
