The Chancellor has confirmed a cut in stamp duty in England, telling the Commons: “Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society. Stamp Duty is a tax everyone pays to the Government when they buy a house - with exemptions for lower value houses and support for first-time buyers.
“So, to support growth, increase confidence and help families aspiring to own their own home, I can announce that we are cutting stamp duty. In the current system, there is no stamp duty to pay on the first £125,000 of a property’s value. We are doubling that – to £250,000.”
Mr Kwarteng also said the stamp duty threshold for first-time buyers would be increased from £300,000 to £425,000.
He added: “We’re going to increase the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000.
“The steps we’ve taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty, effective from today.”
Shadow chancellor Rachel Reeves said: “These stamp duty changes have been tried before. Last time the Government did it a third of the people who benefited were buying a second home, a third home or a buy-to-let property. Is that really the best use of taxpayers’ money when borrowing and debt are already so high?”
Ms Reeves criticised the Government for not having independent forecasts from the OBR in connection with the statement, adding: “Never has a Government borrowed so much and explained so little.
“Economic institutions matter yet this Government has undermined the Bank of England, sacked the respected permanent secretary at the Treasury and silenced the Office for Budget Responsibility. This is no way to build confidence, this is no way to build economic growth.”
