“I have mixed feelings about this Budget. One the one hand, Labour has stuck to its commitment to reforming the stifling planning laws and to building 1.5 million new homes. That is very good news and will go some way to resolving the housing crisis in this country. On the other hand, the hefty tax rises will mean less money in people’s pockets – and less money to buy new homes. More specifically, the increase in Stamp Duty on buy-to-let properties and second homes to 2% to 5% from tomorrow will dampen demand.
The rise in Capital Gains Tax on second properties, with the lower rate going up from 10% to 18% and the higher rate up from 20% to 24%, won’t help either. Neither will National Insurance contributions going up from 13.8% to 15%, which will stifle growth.
Much depends on how the markets react to this Budget and whether interest rates will go up or down. I do understand that the UK’s finances are in a parlous state, but I’m not sure how Rachel Reeves’s avowed aim of promoting growth will be achieved by imposing £40 bn of tax rises.”
