Tue 15 Nov 2016
The Daily Telegraph has this morning launched a campaign calling on Chancellor Phillip Hammond to slash stamp duty
The newspaper - a long-time critic of George Osborne, the former Chancellor whose reforms of stamp duty were announced two years ago - says in a front-page lead this morning that the Exchequer has received £370m less in stamp duty income than the £700m it anticipated because of the reforms.
The Telegraph also claims the changes have lost the wider economy around £1 billion because of reduced expenditure thanks to a fall in the number of transactions.
“Today The Daily Telegraph launches a campaign calling on Mr Hammond, the current Chancellor, to address the issue in next week’s Autumn Statement” says the newspaper.
The newspaper dedicates its argument largely to the market for homes above £1m.
It says that while Osborne wanted to stop stamp duty distorting the market, his reforms inadvertently had that very effect for most expensive homes.
“Raising stamp duty by just one per cent on homes worth between £1m and £2m led to an eight per cent decline in transactions. This is far higher than forecast by the Office for Budget Responsibility, which said the figure would be 2.8 per cent” claims the newspaper.
It then cites business consultancy Oxford Economics as saying that as a result of the stamp duty reforms, some 1,950 fewer properties worth £1m or more were sold in 2015 compared to expectations.
The Telegraph also dedicates an editorial to the subject.
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