Finance (No. 2) Bill — House of Commons, 2018-02-21
Topic: Housing
Anneliese Jane Dodds (Labour, Centre-left): I do not believe that that is uniform across the country. Of course there would be implications if there were very rapid changes. That would concern many people, but we feel that in this area, when it comes to the cost for first-time buyers, there has not been a significant change. If the right hon. Gentleman has evidence that there has been a change for first-time buyers, I would certainly like to see it. There might have been a change across the whole piece, but it certainly has not had an impact on first-time buyers who are trying to buy the lowest cost houses, as many are struggling more than ever before Labour Members say that the situation might be different if the measure was accompanied by others that promoted the production of genuinely affordable homes. As it stands, however, any additional homes—at least those promoted by any Government policy—will not be in place before the stamp duty cut takes place. The funding allocated in this regard is woefully inadequate. Our most recent debate about this matter in this Chamber revealed that the Government’s new housing infrastructure fund moneys, such as they are, will not start to come forward until 2019-20, which means that the £585 million cost of stamp duty cuts in 2018-19 will not be accompanied by housing infrastructure measures, and the same will be the case the following year. It is only two years later that extra money for the infrastructure fund will be forthcoming. In any case, that will amount to less than half of what the public purse will have renounced that year because of the cut in stamp duty. It is extremely disturbing that the Government have chosen to plough ahead with this approach in the absence of measures to significantly boost supply I repeat the calls we made in previous debates on the Bill for the Government to come clean on the advice they received about this measure. What do the economists in the Treasury say about this approach in the absence of measures to substantially increase supply? Ministers can claim—we have heard this from the Chancellor—that the OBR has not taken the small clutch of housing measures in the Budget into account in its analysis, but most experts who have taken those very small changes into account concur with the OBR’s original assessment. Was that also the case with Treasury officials? We in this House deserve to know, as do our constituents, particularly if they are faced with any rise in house prices for first-time buyers, as anticipated by the OBR. I point out that the Government’s own assessment of a previous stamp duty cut, again in the absence of measures to boost substantially the supply of affordable housing, indicated that "the tax relief has not had a significant impact on improving affordability for first-time buyers." We also need to know the regional impact of the measure. As colleagues mentioned in our previous debate on this matter, the upper limit of £500,000 in high-cost areas and £300,000 elsewhere means that the change will not have a positive impact in huge swathes of the country, aside from reducing the revenue pot overall, with the result that other taxes on individuals and companies have to take up the slack, unless public services are to be cut further. For many people, home ownership is a distant dream when there is no way they can afford the necessary deposit. Today’s figures showing that real wages have fallen for the seventh month in a row should give us all pause for thought about whether the proposed measure is appropriate.