HC Deb 06 May 1993 vol 224 cc278-9
10. Mrs. Ann Winterton

To ask the Chancellor of the Exchequer what recent representations he has received from the Manufacturing and Construction Industry Alliance, the Building Employers Confederation and the Housebuilders Federation about stamp duty.

Mr. Nelson

We have received representations only from the Housebuilders Federation. It welcomed the doubling of the stamp duty threshold.

Mrs. Winterton

Does my hon. Friend agree that stamp duty is an archaic tax which suffocates the housing market? Will he respond positively to the representations from the Construction Industry Employers Council and the Manufacturing and Construction Industry Alliance by restricting the tax payable to a percentage of the amount by which a property's value exceeds £60,000; or, better still, will he announce that the tax will be abolished altogether?

Mr. Nelson

I should like to be able to announce that. I know that stamp duty is not a much loved tax, but it will bring in this year on land and buildings £570 million, and on shares it will bring in more than £1 billion next year, so it is a very significant source of income. As for making a tax-exempt band as opposed to a threshold, the cost of doing that would be very significant; it would amount to £270 million. We have already gone a long way. In the Budget, my right hon. Friend the Chancellor made a significant, welcome and important increase in the stamp duty threshold.

Mr. Gunnell

Could the Economic Secretary tell me the percentage drop in the number of transactions involving stamp duty as a result of the Budget changes? Is he using that as an argument to close the Leeds stamp duty office? Is he aware that there is great concern in the Leeds financial community about the closure of that office? Does the hon. Gentleman realise that, in closing the office, he is going against the trend of other financial institutions, all of which regard Leeds as a growing and strengthening centre for financial services?

Mr. Nelson

As for the number of transactions, that has been picking up recently. I acknowledge immediately the hon. Gentleman's concern. I know that he has represented the interests of that office in his constituency on this matter. He will know that I have written to him. Some regional stamp duty offices have been changed largely because of advances in technology as well as the need to save costs. Although a relatively small number of people are involved, I acknowledge the importance of that local service to many businesses.

I am sorry that I am not able to give the hon. Gentleman a more favourable reply today than I have done in my letters, but I am always prepared to hear his representations.