HC Deb 11 April 2002 vol 383 cc147-8
16. Mr. David Kidney (Stafford)

What assessment he has made of the impact of stamp duty on labour mobility. [44514]

The Financial Secretary to the Treasury (Mr. Paul Boateng)

We keep all taxes under review, including stamp duty on property. The number of property transactions in 2001 was the second highest since 1989.

Mr. Kidney

The pace of house price inflation is so great that in some parts of the country jobs cannot be filled because people cannot afford to live in those areas. Does my right hon. Friend recognise that difficulty, and has any modelling work on stamp duty been done to see whether a different application of stamp duty would alleviate the problem?

Mr. Boateng

My hon. Friend makes an interesting point, which no doubt my right hon. Friend the Chancellor will hear as a Budget representation. We have sought to focus the cuts in stamp duty on areas in most need. We have exempted all transactions below £150,000 in 2,000 disadvantaged areas. That undoubtedly will encourage investment and help the very people about whom my hon. Friend rightly expresses concern.

Mr. Mark Field (Cities of London and Westminster)

In relation to stamp duty in central London and the very high cost of property, what are the Minister's thoughts on how labour mobility, especially in public services, will be enhanced by the high level of stamp duty? The fact that it is introduced at particular thresholds means that it applies to a different level of housing tenure in London and the south-east than it does in other parts of the country.

Mr. Boateng

We took those issues into account when we set the levels. Some areas in London will undoubtedly benefit from the measures that we are taking in relation to stamp duty in disadvantaged areas. We have also taken an initiative on starter homes, and above all house purchasers have benefited from the fact that as a result of the policies adopted by this Government and the economic stability that is delivering more success, mortgage payments are at their lowest for many years. They are now running at £150 a month less than they were at their highest. That is a real achievement, which is down to the sound policies adopted by this Government, in stark contrast to the ones supported by the Conservatives.