Stamp Duty Land Tax

Andrew Snowden Excerpts

Tuesday 28th October 2025 Commons Chamber

[Bobby Dean]

I wholeheartedly agree with my hon. Friend. I made the point earlier that the welfare bill went up on the Conservative Government’s watch, not least because they cut back NHS funding.

[Mr Andrew Snowden (Fylde) (Con)]

Will the hon. Member give way?

[Bobby Dean]

I will make some progress; I have been intervened on quite a few times. In the Chamber, we may agree on the analysis of stamp duty’s failings, but the Liberal Democrats cannot support the motion, because it is not a credible plan. Also, if a stamp duty cut were made in isolation, it might not deliver what Conservative Members say it would. It might just gum up the housing market further for the next generation.

It is high time that we had a serious debate about property tax reform. Some of that has happened in the Chamber today, but the motion does not reflect that serious debate, so I will not support it.

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[Rebecca Paul]

My hon. Friend makes the point very well. Going back to the hon. Member for Hexham (Joe Morris), we need to take this seriously. We can either look back the whole time, or we can look forward and think about what policies are right for the people of this country and deliver for the people of this country.

[Mr Snowden]

That point shows the complexity of the issue. Painting it with “14 years this” and “14 years that” does not represent what is happening. In Fylde, we have seen the largest amount of house building taking place in the villages and small towns, because developers know that they can get planning permission there and sell the houses for a lot more than they could 5 or 10 miles in a different direction. In some areas, there has been significant overdevelopment on the green belt, and we should not use individual examples as a reason to redefine vast chunks of the green belt as grey belt simply in order to concrete over our countryside.

[Rebecca Paul]

My hon. Friend’s excellent point is pertinent to my constituency as well, which is full of amazing and beautiful green-belt land. We are suffering from what this Government have done on housing targets, which have doubled in Reigate and Banstead while going down in London. That means that we are building more homes, but not for local people and not for the children the hon. Member for Hexham mentioned, who want to stay close to home. It is for people living in London who then move out to Reigate and Banstead.

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[Mr Bedford]

I will give the hon. Member an example of Conservative aspiration. My family never owned their own homes—my grandparents did not own their own home—but Margaret Thatcher gave them the opportunity to do so. She gave many people like my grandparents the opportunity to aspire, to achieve and to own their own homes. That is the aspiration we need to get back to as a country. Every generation of Conservatives has understood this ambition. It is not our background that shapes our future. This is equality of opportunity in action, not the equality of outcome that the Labour party desire so much.

We cannot talk about aspiration without celebrating the Prime Minister who understood it best. Mrs Thatcher gave people the freedom to own their own future. She rewarded hard work through lower taxes, turned millions of people into shareholders through privatisation and made dreams of home ownership a reality for many across the country with her right-to-buy scheme. Mrs Thatcher just got it; she understood human nature. She understood that people are ambitious and she knew that when we trust individuals and not the state, Britain succeeds.

[Mr Snowden]

Going back to what a former fantastic, great Prime Minister did—and comparing it with the policy on stamp duty—we know that it was hated by Labour Members, because it took away the choking role of the state and freed people up to have that aspiration and that social mobility. It proved that allowing people to buy their own homes and removing the state from their lives created social mobility in the same way that removing that tax and allowing people the aspiration to smash those ceilings is important. Labour Members hate it because it would reduce the size of the state, the dependency on the state and the hold that they have over people’s lives.

[Mr Bedford]

My hon. Friend is absolutely right. Unfortunately, Labour Members tend to have the mantra: what I cannot have, you shall not have. We on the Conservative Benches want everyone to succeed.

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[Gideon Amos (Taunton and Wellington) (LD)]

Access to home ownership has never been harder. Fewer and fewer people can afford to buy a home of their own, and 12,000 households in my county of Somerset are languishing on the waiting list unable to get a home at a decent rent. We have heard a lot about Mrs Thatcher, but since the sell-off of council houses began, 2.3 million were never replaced. The Conservatives broke that promise over and over again, so although our population has increased by five times that amount, we have had a massive loss of homes for social and council rent; several Conservative Governments never replaced them.

By taxing transactions, stamp duty land tax is unfair on buyers. It needs to be reformed, but, as my hon. Friend the Member for St Albans (Daisy Cooper) has said, as part of a full review of property taxes. The vast majority of first-time buyers would be completely unaffected by the Opposition’s proposals, because they already pay no stamp duty land tax. It seems clear that, by triggering a big increase in house prices, the policy would mostly benefit those who are selling homes at high prices, and probably only those right at the beginning of the chain.

More importantly, wiping out tax revenue without wider tax reform or any serious proposals for the resulting massive hole in public finances would be another Liz Truss Budget in the making. Perhaps she planted the magic money tree, but this autumn we are seeing the fruits of it in more mad Conservative tax proposals. It seems clear that the Conservatives have learned nothing from the Truss Budget’s rocketing of inflation and increasing of mortgage rates, which affected everyone in my constituency.

[Mr Snowden]

The interest rates on the bond market are now higher than they were after that mini-Budget. Constantly harking back to that, when we are in a worse position now than we were then, makes the point that the Lib Dems are on everybody’s and nobody’s side.

[Gideon Amos]

I understand why Conservative Members keep asking us to look forward not backwards: their own Government’s experience with the Truss Budget is one that they do not want to remember and would like to forget, but unfortunately its effects were long, far-reaching and serious for all of our constituents.

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[Jack Rankin]

I would say that I hope the hon. Member in question is closer to this Budget, but having listened to some of his other utterances, perhaps most of us on the Conservative Benches would not hope for that. Never mind!

The main criticism we have heard from Government Members, which is a fair criticism, is that of cost. There has been some constructive criticism from Labour Members who have agreed that stamp duty is a bad tax, but have then said that cost is the problem. They should be a little bit self-aware about that, because one of the reasons we are in such a fiscally precarious place is that some of the decisions the Government made in their previous Budget have put us in something of a fiscal doom loop, which we do not seem to have any chance of escaping.

[Mr Snowden]

While we are on the subject of paying for things and ownership of land—trying to find the funds to abolish a tax and allow our citizens to purchase their own home—one obvious solution would be to not give away territory that we already own and pay £36 billion over the lifetime of the deal to do so. One way of paying for this policy that my hon. Friend might suggest to Labour Members is to avoid paying to give away our own land, taking money off our citizens who want to buy their own land.

[Jack Rankin]

My hon. Friend is quite right. Although we are at risk of picking apart the Budget in its entirety, I would suggest that giving away our sovereign land and paying for the privilege might not be a great thing to do at any time, but particularly in a fiscally constrained environment.

Despite having to have a reasonable answer on the question of cost, which I will get to later in my remarks, Conservative Members should not be shy when it comes to talking about some of the other positive fiscal benefits that abolishing stamp duty would yield. One area in which we Conservatives have not done as well as we could is that of making the positive, dynamic argument for some tax cuts, because every move in the housing market engages a raft of removers, decorators, window cleaners, gardeners, plumbers and electricians. Do those sound like the kind of people who could be described as “the rich”, as we have heard from Labour Members? These are real working people with decent jobs, generating income for the Exchequer through VAT, income tax and national insurance, and we should not be shy about saying that. If we are lucky, abolishing stamp duty might also lead to a reduction in welfare spending through job creation.

There are also gains that cannot be recorded in a spreadsheet. Those include families such as mine moving into homes that are the right size for them, and pensioners rightsizing—some people have used downsizing, but I think rightsizing is the better word—to be closer to their grandchildren, which might provide childcare support for young families. They also include economic and social mobility, such as taking a promotion in a new area. Those things might not show up on a Treasury balance sheet, but they are really important things for our society. Cutting stamp duty would generate extra revenue for the Treasury in myriad ways that we should be happy to talk about.

That said, as a credible Opposition, we still need to cost this policy. That is why, as we have heard already in this debate, the Conservative party has found £47 billion of savings, all while being able to honour our golden economic rule. That economic rule says that the majority of public sector spending reductions that we identify must go on deficit reduction.

As a policy, the abolition of stamp duty aligns with many of the principles that those of us on the Opposition Benches hold dear to our hearts. It rewards ambition, it unlocks free markets, and it lowers the tax burden on families. Labour will not make any difference on housing because it is just too conflicted. Fixing the housing market needs holistic solutions. We cannot talk about improving the housing market with the levels of migration that we currently have. We cannot talk about improving the housing market while overseeing record low house building numbers in London, as our developers are strangled in regulation. We need a holistic solution. We need to abolish stamp duty. We need to end mass migration. We need, I am afraid to say, to deport hundreds of thousands of illegal migrants.

I look forward to seeing more ambition from the Opposition on reforming our planning system. That is part of a vision for my party, and I am proud to be a part of it. However, it is not a new vision. Home ownership and supply-side reforms have been at the centre of the Conservative vision throughout our storied history, whether that is Stanley Baldwin, Harold Macmillan or Mrs Thatcher. It is a moral mission to support young aspirant people through these important gateways of life. Buying your own home and starting a family—these are the building blocks of all our communities. Abolishing stamp duty in this costed way will give people the keys to their own futures and secure the future of this country.