Brown’s budget to stress more on economic stability |
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Wed, 16 Mar 2005 01:00
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Continued economic stability, with low unemployment and interest rates will most likely set the tone at this year’s Budget to be announced on Wednesday, experts said.
In his ninth Budget, Gordon Brown of the Labour party is expected to raise the stamp duty limit from £60,000 to £100,000, while leave the petrol duty untouched for the second year in a row.
| In his Wednesday’s speech, Brown will more probably say, it would be wrong to raise the duty since oil prices remain volatile, say experts.
Nonetheless, the likely theme of all three main parties' general election manifestos is to increase stamp duty limit so that people get on the property ladder.
Since the first-time buyers are at a 20-year low, it can have severe impact on the country’s economy. However, this was not the case 10 years ago, whereby buyers could easily avoid stamp duty, with more than half a million properties in England and Wales alone going for less than £60,000.
But over the years, stamp duty has still remained constant, despite average UK property prices soaring. Resultant, the number of properties incurring stamp duty has sky-rocketed.
The Conservatives say the UK faces an £11 billion deficit in its public finances and that the chancellor was filling the coffer by slapping a 40 per cent tax on profits from house sales. A statement dismissed by the Treasury officials stating as “laughable joke.”
Experts are also of the opinion that Brown may expand his tax credit scheme to improve the income of low-paid families.
The Tories however feel that whatever the chancellor is giving away will be taken back in higher taxes once the Labour comes to power in the general election.
Meanwhile, Treasury said that people shouldn’t expect any pre-election giveaway, the chancellor is supposed to have somewhere around £2 billion to spare.
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