Aug 6, 2008
Vince Cable cautions stamp duty suspension
Commenting on reports that the Government may temporarily suspend Stamp Duty, Liberal Democrat Shadow Chancellor, Vince Cable said:
“The Government shouldn’t be trying to bribe people into buying houses in a falling market.
“With the economy grinding to a halt, we are already likely to see a shortfall in taxation. Suspending stamp duty, even on a temporary basis, will only make this situation worse.
“The falls we are seeing in the housing market are painful, but necessary, if homes are to become affordable once more for those not on the property ladder.
“Ministers allowed house prices to get hopelessly out of control. They must not now artificially prop up the market for political expediency.
“The stamp duty is system is deeply unfair, as the slab structure creates massive distortions in the market, but this needs to be dealt with in a methodical way, not through panic decisions.”
