Homebuyers have forked out £31.5bn in stamp duty over the past ten years. Last year alone, the figure reached £6.5bn - a staggering 675% increase since Labour came to power. In 1997-1998, just £830m in stamp duty was paid. Increases introduced by Gordon Brown when he was Chancellor, which were widely criticised at the time, are forcing record numbers of homebuyers to pay stamp duty. Before Labour came to power, the tax was charged at just one per cent on all properties sold for £60,000 or more. Today, it is charged at 1% on houses costing between £125,000 and £250,000, 3% on those worth from £250,000 to £500,000 and 4% for those sold for more than £500,000. In London, the average asking price for a home is £402,000, which would mean stamp duty of more than £12,000. The majority of first-time buyers are now forced to pay the tax, which - coupled with the recent property boom - makes finding enough money to buy a home even harder.
Archive for the ‘Politics’ Category
Government rakes in £31bn in stamp duty
Thursday, February 21st, 2008Porsche challenges London gas guzzler tax
Tuesday, February 19th, 2008Luxury carmaker Porsche said on today it planned to legally challenge London mayor Ken Livingstone’s decision to help fight global warming by taxing gas guzzling cars driving in the city centre. Porsche said the £25 daily charge was unfair, would not cut emissions of carbon dioxide and would deter businesses from moving to the city. Environmentalists lashed out at the Porsche move and called for even tougher measures against the most polluting cars in next month’s budget. Announcing the plan last week Livingstone admitted that it would have little immediate effect on carbon emissions but said it would discourage people from driving polluting cars in the city centre and encourage manufacturers to make cleaner engines. He said the new scheme would raise £30 million to £50 million a year and cover most of the cost of a major cycling initiative that will include a Paris-style roadside bicycle hire scheme in the city centre.
Banks protest at Rock’s unfair advantage
Tuesday, February 19th, 2008Rival banks protested that the nationalised company could enjoy a huge competitive advantage over them and steal business away. And MPs complained that the Rock was risking repossessions by attracting new customers with offers to lend them far more money than their homes are worth, by offering cheaper rates on loans of up to 125% of property values - where a quarter of the debt is unsecured. The political crisis deepened after the Government refused to deny claims that taxpayers face a £100m bill for the cost of advice from banks and lawyers during the failed efforts to secure a private sale. The Prime Minister has said nationalisation was a temporary measure, although new Northern Rock boss Ron Sandler has said it will be ’some years’ before the bank can repay its debts. Today’s emergency Bill will give the Government special powers for 12 months to nationalise any bank, not just Northern Rock where it is necessary to protect “the stability of the UK financial system”.
Northern Rock nationalised
Sunday, February 17th, 2008The government decided to nationalise Northern Rock today, abandoning a five-month attempt to find a private sector buyer for the ailing bank. “In the current market conditions we do not believe the two proposals deliver sufficient value for money for the taxpayer,” Finance minister Alistair Darling told a news conference. “So the government has decided to bring forward legislation to bring Northern Rock into a temporary period of public ownership.” The government will put forward legislation on tomorrow to take the bank into public hands — the first major nationalisation in Britain since the 1970s — and trading in Northern Rock shares was suspended.
Internet ban for just 3 illegal downloads
Tuesday, February 12th, 2008Film and music fans who illegally download material will be cut off from the internet under Government plans to tackle online piracy. Under proposals to be unveiled next week, users suspected of wrongfully downloading films or music will be first sent a warning email telling them to stop. If they carry on, they will be suspended. And if they are caught a third time their internet access will be cut off. Broadband companies who fail to enforce the ‘three-strikes’ rule would be prosecuted and their suspect customers’ details could be made available to the courts. A similar system already operates in France and the US and the Government believes it could work here.
£25bn sweetener revealed for Northern Rock
Monday, January 21st, 2008Today’s detailed plans to rescue Northern Rock involves converting the £25bn of Bank of England loans into bonds that would be sold off to investors. The bonds would be available for up to five years after which any remaining debt would be written-off. Critics point out that the scale of the rescue package is highly risky. In the event of a catastrophic downturn in the housing market, with Northern Rock mortgage holders defaulting on their debts, the taxpayer would be left seriously out of pocket. With this new deal, potential purchasers of Northern Rock will no longer be responsible for paying back the loan and will have until February 4 to make a renewed bid to the government. In return for taxpayer support, the government will receive a percentage of the new owner’s profits. If the government was unable to secure a sale, then nationalisation would become necessary.
