New figures expose growing reach of Gordon Brown’s stamp duty hikes : Graham Evans, Conservative MP for Weaver Vale
Graham Evans, Conservative MP for Weaver Vale

New figures expose growing reach of Gordon Brown’s stamp duty hikes

Average detached home in Weaver Valenow pays £2114 in stamp duty

As concerns grow about the state of the housing market, worrying new figures have This weekrevealed how family homes across the country are being hit by punitive rates of stamp duty imposed by Gordon Brown. The average detached home is now being forced to pay 3% stamp duty, and has seen its stamp duty bill rise by almost £9,000 under Labour.

·         Stamp duty hiked by stealth: The thresholds for 3 per cent and 4 per cent stamp duty have never been increased to compensate for changes in house prices. As a result, at every Budget, the lack of any announcement on indexation means more and more homes are sucked into the higher tax bands. By saying nothing, Gordon Brown literally increases stamp duty and rakes in more money.

·         £9,000 tax bombshell: New analysis of official Government data has revealed that the average detached home in England paid just £1,170 in stamp duty in 1997. Today, the average detached home pays £9,903, by virtue of being pushed into the 3% stamp duty bracket – a hike of £8,733. In Weaver Vale, the average detached home pays £2114, an increase of £1207since 1997.

·         Three out of four detached homes hit: Detailed calculations across each local authority reveal that almost three quarters of family homes are now being hit with punitive stamp duty. The average detached home in 70 per cent of local authorities in England and Wales now pay 3% or 4% stamp duty, compared to none in 1997.

·         Taxed if you move, taxed if you don’t: High rates of stamp duty are discouraging many families from moving. Yet they now face the prospect of new stealth taxes if they stay and build an extension. Spurred on by Government rules, town halls are starting to introduce a ‘bedroom tax’ of £1,000 per spare room if an existing house wants to obtain planning permission. New conservatories or garages could also be taxed in such a way. A council tax revaluation is also being planned for England by the Valuation Office Agency, Gordon Brown’s council tax inspectors, which will target home improvements, scenic views and nice neighbourhoods.

·         Conservatives call for help for homeowners: Conservatives are calling for a series of measures to help the housing market, including abolishing the new red tape of Home Information Packs, cutting stamp duty for first-time buyers and cancelling the council tax revaluation plans. First-time buyers are being hit the hardest by the credit crunch.

Weaver Vales prospective MP, Cllr Graham Evans said:  “Gordon Brown has hiked taxes on family homes across Weaver Valeyear on year. Labour have increased the burden of stamp duty by stealth, punishing people who have invested in and improved their homes. I fear even more stealth taxes are on the way in the form of new bedroom taxes to extend your home and a sinister, intrusive council tax revaluation.

“At a time when the housing market is so fragile, we need practical measures to help people move home – such as abolishing the red tape of Home Information Packs and cutting stamp duty for first-time buyers who are suffering the most.”

JUNE 2008