The prerequisite to improved long-term economic performance is ensuring economic stability. Giving the Bank of England operational responsibility for setting interest rates was the earliest earnest of that aim. However, my right honourable friend's Budget and Finance Bill contribute powerfully to stability. First, Clause 15 provides for the reduction in the rate of mortgage interest relief. The housing market in the past 10 years has experienced an unsustainable boom in the late 1980s and we are only recently emerging from the inevitable slump that followed it.
Stability is essential to home owners.
Negative equity has been the curse of many home owners. The situation is improving, but no one wants to see another period of hardship and frustration for home-owners like that. But, equally, we do not want to return to the days when house prices were rising out of control. That is why the Budget was the right moment to announce a further reduction in the rate of mortgage interest relief from 15 per cent. For the same reason, Clause 49 implements an increase in stamp duty, which took effect earlier this month.