§ 18. Mr. Dudley Smithasked the Chancellor of the Exchequer how much annual revenue he estimates would be lost by reducing stamp duty on the sale of houses by 50 per cent.
§ Mr. BiffenA total of £55 million this year and £85 million in a full year, on the assumption that each rate of duty on residential property was halved from 1 August.
§ Mr. Smithis my right hon. Friend aware that quite modest houses now attract a severe level of stamp duty because of the exceptional inflation that has occurred in the property market? Although I appreciate that my right hon. Friend the Chancellor of the Exchequer cannot do everything at once, will he please take some action to ease the burden on house buyers when he next examines taxation changes?
§ Mr. BiffenA useful debate was held on this subject on the Report stage of the Finance Bill yesterday, following the initiative of two of my hon. Friends. I 1983 do not think that I can go beyond what was said by my hon. and learned Friend the Minister of State, Treasury, in answering that debate.
§ Mr. CryerWould not a reduction in stamp duty, particularly at the lower level of house prices, assist potential owner-occupiers? Would it not also materially assist if the Government considered getting rid of the solicitors' conveyancing monopoly so that their lavish charges are reduced to help owner occupiers, or are the Government not interested in that kind of thing?
§ Mr. BiffenThe conveyancing monopoly falls outside the responsibility of the Treasury, but I must point out that it is easy enough to suggest means of depriving the Government of revenue but extremely hazardous when we have a public borrowing requirement of £8,000 million.