§ Mr. Lyellasked the Chancellor of the Exchequer what steps he proposes to take in the light of the extra expense being incurred by those currently seeking to purchase their council houses by reason of the fact that stamp duty falls to be ascertained on the pre-discount value of the dwelling and not the post-discount price thereof; and whether he will make a statement.
§ Mr. Peter ReesFollowing the discussions of which my hon. Friend the Minister for Housing and Construction spoke in replying to a question on 12 November, we accept that the stamp duty law should be changed so that those buying public sector dwellings at a discount—either under the right to buy provisions of the Housing Act 1980, or the Tenants' Rights etc. (Scotland) Act 1980, or under a consent issued by the appropriate Secretary of State—should pay stamp duty on the actual price—that is, post-discount—they pay for their house. My right hon. and learned Friend intends to include a provision to that end in next year's Finance Bill for the approval of the House. It is intended to give effect to the change as soon after next year's Budget day as is practicable. As the duty is payable on the document which completes the transaction, people will be able to make an application to buy their house before Budget day and still benefit from the change.
Public Sector and Non-Financial Private Sector Borrowing Public sector borrowing requirement* Of which Total Central government Local authorities £ million £ million (Percentage of PSBR) £ million (Percentage of PSBR) 1975 First quarter 1,506 956 523 Second quarter 3,089 2,391 604 Third quarter 2,483 2,253 205 Fourth quarter 3,406 2,745 297 1975 10,484 8,345 (80) 1,629 (15)