Business Secretary Kemi Badenoch has publicly challenged Shadow Chancellor Rachel Reeves to adopt the Conservative party's proposal to abolish stamp duty for primary residences in the upcoming Budget.
The Conservative Stamp Duty Proposal
The Tories are advocating for the complete removal of these charges on main homes, which would constitute a substantial £4.5 billion tax cut. The party states this would be financed through reductions in the welfare budget.
According to research commissioned by the Conservatives, the tax is deeply unpopular with the public. Their findings indicate that more than two-thirds of homeowners and prospective buyers view stamp duty as an unfair levy.
Nearly half of all Britons identify it as a significant obstacle to purchasing or selling a property. The research further suggests that 2.8 million people would be more inclined to downsize by 2030 if the duty was either scrapped or substantially reduced.
Impact on Home Buyers and the Economy
The financial burden of stamp duty is pronounced, with close to one in five Britons naming it the single biggest financial hurdle to achieving home ownership.
The potential removal of the tax could also stimulate economic activity beyond the property market. The study found that 77% of buyers would use the savings from an abolished stamp duty to pay for home renovations. It is estimated that this could inject up to £1.2 billion into local economies by re-energising the housing market.
Mrs Badenoch strongly criticised the tax, stating it 'punishes people for doing the right thing - for working hard, for saving hard and for wanting a place to call home'.
Political Pressure and Cross-Party Support
In comments to the Daily Mail, Badenoch elaborated on her position, saying, 'Stamp duty traps people and is stifling the housing market. It keeps older owners in homes that are too big and too costly. It stops younger families from finding the space they need.'
She directly addressed the Shadow Chancellor, adding, 'Rachel Reeves should listen to the public, steal our plan for savings and scrap stamp duty in her Budget.'
The call to abolish stamp duty has received support from other senior Conservative figures. Shadow housing secretary Sir James Cleverly labelled it 'a bad tax' and 'an anti-aspiration tax', confirming the party's commitment to its removal.
Similarly, Shadow chancellor Sir Mel Stride described stamp duty as 'one of the most damaging taxes in Britain', claiming its abolition would 'unleash opportunity, unlock homes, and strengthen our economy'.
A Government spokesman defended the current system, highlighting that stamp duty raised around £12 billion last year, funds which contribute to public services and economic investment. However, they also acknowledged ongoing efforts to improve the home buying process, citing reforms that aim to cut weeks from the process and save first-time buyers an average of £710.
