Sunak vows to axe stamp duty for first-time buyers on homes up to £425,000
As Rishi Sunak appeared on the campaign trail on Saturday, he still faced scrutiny over his decision to leave D-Day commemorations, ITV News' Jasmine Cameron-Chileshe reports
Prime Minister Rishi Sunak has pledged to axe stamp duty on homes up to £425,000 for first-time buyers.
Stamp duty land tax currently applies to sales over £250,000. The change would affect 200,000 households every year, the Telegraph reported.
The commitment comes before the Conservatives’ manifesto is revealed next week and builds on a proposal from former prime minister Liz Truss’s Growth Commission.
From March next year, the threshold figure for stamp duty will fall to £125,000. This is due to the end of a “temporary” relief period, so the levy will apply to cheaper – and likely a greater number of – purchases.
Chancellor Jeremy Hunt had previously said the Conservatives would not increase capital gains tax, stamp duty or the number of council tax bands, or “undertake an expensive council tax revaluation”.
Institute for Fiscal Studies associate director David Phillips had called for the abolition of stamp duty.
He said: “It is one of the most economically damaging taxes levied by the Government, significantly increasing the cost of moving and gumming up both the housing and labour market.”
The commitment comes after Penny Mordaunt branded Sunak's decision to leave the D-Day 80th anniversary events early as “completely wrong”.
Ms Mordaunt, a Navy reservist, said it was right that Mr Sunak apologised not only to veterans but to the public, although she added the issue should not become “a political football”.
The Conservatives’ manifesto commitment to abolish stamp duty builds on a proposal from former prime minister Liz Truss’s Growth Commission.
Stamp duty land tax currently applies to sales over £250,000, with the proposed change impacting 200,000 households every year, The Telegraph reported.
During the seven-way BBC debate on Friday, the Commons Leader said: “What happened was completely wrong, and the Prime Minister has rightly apologised for that, apologised to veterans but also to all of us, because he was representing all of us.
“I’m from Portsmouth, I have also been defence secretary and my wish is at the end of this week is that all of our veterans feel completely treasured.”
A snap poll by More in Common suggests that viewers are more than twice (32%) as likely to think that Ms Mordaunt would make a better prime minister than Mr Sunak.
Asked if she would have left Normandy early as Mr Sunak did on Thursday, Ms Mordaunt said: “I didn’t go to D-Day, I think what happened was very wrong, I think the Prime Minister has apologised for that.
“But what I also think is important is we honour their legacy, they fought for our freedom, and unless we are spending the right amount on defence we can’t honour that legacy.”
She later added: “I don’t want this issue to become a political football.”
Reform UK leader Nigel Farage replied: “Well, it already is. It already is because the veterans themselves are speaking out saying he’s let the country down.”
The Prime Minister apologised for his decision to leave France before a major international ceremony to mark the anniversary of the Allied landings but urged people not to politicise the event.
He admitted that “on reflection” he should have stayed for the event, where world leaders including US President Joe Biden marked the sacrifices made by troops landing on the Normandy beaches in 1944, rather than record a General Election campaign TV interview.
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