View more on these topics

‘End stamp duty on homes under £500k’: Senior Tories’ £16bn wish-list

A group of influential Conservative MPs is calling on the Government to cut £16bn worth of taxes in the Autumn Statement.

The Free Enterprise Group wants stamp duty scrapped on homes worth less than £500,000, costing £2.4bn.

The 42 MPs, including Treasury financial secretary Sajid Javid, also call for a £5bn income tax cut by increasing the 40p tax band from £41,450 to £50,000.

Other proposals include a flat rate of VAT of 15 per cent, which would see huge cuts for VAT-able products and services, currently charged at 20 per cent, but big rises for newspapers, children’s clothes or food.

The group says the VAT changes would be revenue neutral and reduce “distortions”.

It wants a £3.8bn freeze to business rates for the next three years and the abolition of employers’ national insurance contributions for under-25s, costing £290m.

It also wants air passenger duty and green taxes scrapped.

The group says the changes could be paid by ending the ring-fence of health and education, saving £7bn, or cutting nine unspecified Government departments, worth £8bn.

It estimates a three-year cash freeze of benefits excluding pensions would save £3.4bn, while means testing winter fuel allowance and free TV licences would bring in £2bn.

On the stamp duty proposal, Legal & General Mortgage Club managing director Ben Thompson says: “This cut would be fair, encourage more people to move and increase housing mobility.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment