The debate over stamp duty intensified during Prime Minister’s Questions yesterday, as Conservative leader Kemi Badenoch accused PM Sir Keir Starmer of lacking a clear plan for the economy or the housing market.

Badenoch criticised the government’s refusal to consider abolishing stamp duty, arguing that the tax continues to choke property transactions and discourage mobility.

The Tory leader told the commons: “We know that abolishing stamp duty is how we get young people on the housing ladder and get the economy growing, and so why won’t he [the prime minister] scrap this terrible tax?”

In response, Starmer defended the government’s approach, saying any reform must be responsible, fully costed, and fair to taxpayers, and accused the Conservatives of repeating the same unfunded promises that previously crashed the economy.

He also questioned why the Conservatives had failed to abolish the levy during their 14 years in office, and pointed to the Office for Budget Responsibility’s forthcoming review of productivity ahead of the November Budget, citing austerity and Brexit as key factors weighing on economic growth.

The exchange followed an Opposition Day debate earlier in the week, during which MPs voted down a Conservative motion to abolish stamp duty on primary residences.

Meanwhile, recent reports suggest the Treasury is considering potential reforms to stimulate growth and support the housing market, including a proposal to allow buyers to spread stamp duty payments over several years instead of paying a lump sum at the point of purchase.

Proponents of the idea say staggering payments could make the labour market more flexible by allowing people to move more easily and reduce one of the biggest upfront costs of home ownership.

MPs debate stamp duty abolition as Labour votes against Tory proposal