The Treasury has moved to dampen speculation over the future of stamp duty after estate agents and surveyors warned of a potential collapse in the property market prompted by uncertainty over the tax.
Following a report in a red-top newspaper this week suggesting that the Government was planning a stamp duty "holiday", the Chancellor of the Exchequer, Alistair Darling, notably refused to rule out such a move, and confirmed that he was looking at "a number of measures" and "a range of options" over stamp duty as part of a wider economic recovery package.
But the Treasury statement yesterday described the speculation as "simply wrong". It said: "These stories are based on speculation.
Then Housing Minister Caroline Flint insisted the Goverment would be looking at a number of different options for the market when she was challenged on the issue.
She told the BBC's Newsnight programme: "There is no decision on it, we are taking a long look at a number of different options but is about making the right decision and not being bumped into making a decision before the Pre-Budget Report.
"We are looking at a range of options and stamp duty is one of those options.
"But the fact is there is no quick solution here. There isn't a decision that can be made this week in August or next week in August that will make the difference that some people are projecting.
Ray Boulger, senior technical manager at mortgage broker John Charcol, said: "People thinking about buying a house will put off looking, while those already looking will be less pro-active."
Mr Boulger added that he could see the recent slide in house sales continuing as a result.
Shadow Chief Secretary to the Treasury, Philip Hammond, said: “The Government’s position on stamp duty is a toxic combination of chaos and denial.
“First the Chancellor refused to rule out a suspension of stamp duty. Then the Treasury denied it was on the table. Then last night the Housing Minister told the BBC the Government is considering it after all.
“Today, despite evidence from estate agents across the country that buyers are pulling out as a consequence of Darling’s dithering, Caroline Flint said that she did not accept that uncertainty was having an impact on the housing market.
“This continued dithering over a crucial area of tax policy is undermining the housing market and damaging the wider economy. It’s hard to know which has suffered most this week – the Government’s credibility, or confidence in the housing market.
“Alistair Darling must now make an immediate statement to clarify the position and end this fiasco.”
**Indeed if there is a way to fuck it up, New Labour will find it. Yet again they manage to stall the housing market at a stroke. People will not be selling for fear of a holiday coming in and them being thousands of pounds down.
Total inept wankers to a man, or rather a woman in Caroline Flints case.
Some more on how shit James Gordon Brown is...
2 people have spoken:
"Caroline Flint said that she did not accept that uncertainty was having an impact on the housing market."
Cazza just doesn't appear to know how any kind of market works. She understands less about the fundamentals of buying and selling than would be expected of a schoolgirl on work-experience at Tesco.
Look, Caroline, can you stop telling everyone we're putting those on a twofer from tomorrow? We need to shift today's stock first...
No I won't. It doesn't make any difference. So you're wrong and I'm right so I win so shut up.
She like most socialists are only in regulating the markets rather than understanding the effects of such regulations in the real world.
Still let them keep on digging holes and with people like her in power, they shall soon be 6 feet under and out of power.
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