James Cleverly has pledged to scrap stamp duty on all homes if he is elected next Conservative leader and prime minister.
The shadow home secretary said he would scrap what he described as a “bad tax” for all buyers of residential properties, in order to get more people on the housing ladder, as he launched his Tory leadership bid.
The leadership contest he is fighting is set to intensify today. The first round of voting by MPs takes place tomorrow and one candidate will be eliminated.
Currently, stamp duty must be paid on homes worth more than £250,000, or £425,000 for first-time buyers. The rate gradually tapers up, from 5% to 12% for the most expensive properties.
The burden on first-time buyers was temporarily eased in 2022, and the Tories had vowed to make this change permanent in their election manifesto.
Writing for The Telegraph Cleverly said he would make it his ambition to go further, scrapping the “perverse” levy entirely for anyone purchasing a home, regardless of the value of the property or whether they have owned one before.
He argued this would remove blocks on older people downsizing and young families upsizing, allowing for more movement in the market.
In his article for The Telegraph, Cleverly wrote: “The truth is, too many young, aspirational, hard-working people have deserted us and our ideas.
“Just as Thatcher gave council tenants the right to buy, we need to give young people a bigger stake in our society.”
He said the Tories had reached a “survive or die moment” following their historic defeat at the general election, adding: “For the Conservative Party to win the next election, we need to resell our Conservative values, be the party of prosperity, and remake the argument for capitalism.”
He added: “It’s why we were right to cut stamp duty for first-time buyers. But I want our ambition to be to abolish stamp duty for residential properties completely. It’s a bad tax that is stopping too many people getting on the housing ladder. It disincentivises housing transactions, stopping older people from downsizing and young families from upsizing, and slows the building of new homes.”
Cleverly, a former home secretary, is one of six leadership candidates, which will be whittled down to four by the time of the Conservative conference at the end of the month.
It is tad late for this from Rishi’s old gang. We have been screaming out for this for the last 12 months or so but nope, ‘we know better’ attitude prevailed as usual instead of listening to those on the coal face, who actually know the industry inside out, and have decades (not weeks) of experience in the housing market.
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Oh come on everyone! The Tories need a chance! They were only in power for 14 YEARS!
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When will MP’s ever provide more than headline grabbing potential policy. If Stamp Duty were to be scrapped, how on earth are they intending to fill the £12-14 billion a year black hole it would create. Feels very disingenuous after 14 years in government that now is the time to mention such a wild policy with no plan B.
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Probably follow Labour’s plans and do away with the Triple Lock, Means test pensions, abolish single person discount on Council Tax . . .
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Well hopefully by shrinking the state and getting out of people’s lives! Less is more form the Government, we surely don’t need constant new laws being passed!
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More performative nonsense from the government that failed the country for 14 years
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What this country absolutely does not need right now is a reduction in the amount of money that it receives from taxes.
The tax revenue needs to be spent wisely.
The tax revenue needs to be spent honestly.
The tax revenue needs to be directed towards those that need it most.
Schools need sorting – the country will fall apart if our children cannot read, write and count properly.
The NHS needs sorting – a healthy population (body and mind) are able to work and pay more taxes.
The infrastructure needs sorting – roads, rail, energy. If you can’t get to work in the morning, how are you going to pay your taxes.
These are all screamingly obvious to anyone who wishes to think about them for a few moments.
The last government went out of its way to destroy all of them in the name of capitalistic neo-libertarianism. The ultimate expression of “I’m alright, Jack!”
The problem is that a country is only as strong as its weakest link. But who cares if you are in the 1%, right?
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They only go back on stuff when they get in after they discover a black hole in the finances hidden in plain sight by the previous administration. He might as well promise free beer and paid for foreign holiday while in opposition. Look at Labour they were gong to get the rich to pay up, instead they go after little old ladies. Rich for Labour begins on the breadline.
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“Look at Labour they were going to get the rich to pay up, instead they go after little old ladies.”
Not to mention little old men.
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I have been calling for Stamp Duty cuts, since Gordon Brown hiked them from, the easy to understand, 1% across the board.
Cleverley is right, stamp duty is one thing that stops people moving and definitely disincentives downsizers.
20+ years ago, people moved for small reasons.
Now they mainly move for, death, work, divorce. And only the wealthy upsize.
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