Propertymark has challenged Chancellor John Healey to cut the taxes and costs facing buyers, sellers and landlords after he put reducing the cost of doing business at the centre of his economic plans.
Healey used his Labour Party Conference speech in Liverpool to acknowledge that energy bills, regulation, planning constraints and labour costs facing businesses have increased since Covid.
He pledged to reduce the burden of business regulation by 25% by the end of the Parliament as part of a wider drive to increase investment, innovation and employment.
But the Chancellor stopped short of announcing significant tax measures ahead of the Budget on 28 October, instead stressing the Government’s commitment to fiscal discipline and controlling borrowing.
HOUSING COSTS
Timothy Douglas (main picture, inset), Head of Policy and Campaigns at Propertymark, says the Chancellor’s emphasis on jobs and growth needs to be accompanied by action to reduce the financial burden surrounding housing.
He says: “The Chancellor quite rightly talked about jobs for young people, breathing space and hope, but little mention of reducing taxes and costs for home buyers and sellers, renters and landlords.”
Propertymark argues that housing transactions generate economic activity extending well beyond estate agencies, including spending on conveyancing, surveying, removals, home improvements and local trades.
Its latest housing market data shows buyer demand increased during July and more homes came onto the market, although transactions continued to take longer to complete. Rental demand also remained significantly ahead of available supply.
BUDGET PRESSURE
Douglas says the property industry should form part of the Government’s wider growth strategy.
He adds: “When people move house, they stimulate the wider economy through their use of services, purchases of goods and engagement with local trades.
“In the Budget next month, the Chancellor must focus on lowering taxes, supporting the property sector and giving all generations hope through housing as well as allowing the property sector to be a catalyst for economic growth and revival that we know it can be.”
Healey told the conference that growth remained “fragile” but said the UK had recorded the fastest growth in the G7 during the first half of the year.
He also pledged greater devolution, faster infrastructure decisions and a more active approach to regulation, while promising to maintain the Government’s fiscal rules at next month’s Budget.
SMALL BUSINESS CALLS
The Federation of Small Businesses also called for Healey’s growth message to be followed by concrete measures at the Budget.
FSB National Chair Tina McKenzie backed the Chancellor’s focus on the cost of doing business but called for changes including raising the Small Business Rates Relief threshold, reducing employment taxes on smaller firms and increasing the VAT registration threshold.
She said: “The upcoming Budget will be the Government’s opportunity to give small businesses breathing space.”
The Chancellor said his economic strategy would guide decisions at the Budget, with investment, innovation and jobs forming the central elements of the Government’s growth agenda.
