Stamp Duty Land Tax

Bradley Thomas Excerpts

Tuesday 28th October 2025 Commons Chamber

[James Murray]

My hon. Friend is right to point out that the state pension would be under threat were the Conservatives to win the next general election. He is also right to draw the House’s attention to comments made by Conservative Members at their party conference. They may think that people are not listening to what they say at those conference fringe meetings, but we get the reports so we know exactly what they said.

From their recent conference, we know that they think that they can find some £47 billion through cuts to public spending, as the shadow Chancellor said, but let us look at the detail. At least half of those fantasy savings come from a welfare plan that amounts to a menu with no prices: a list of measures that the Conservatives say will raise £23 billion in total, but with no breakdown whatsoever of how. In June last year, just as they were on their way out of Downing Street, they said that they could cut £12 billion from the welfare bill. Now they have doubled that without explanation. Frankly, if the shadow Chancellor thinks that he has any credibility on this matter, he is sadly mistaken. He is far from the best person to make this argument, given that he personally oversaw the biggest increase in benefits spending in decades during his time as the Secretary of State for Work and Pensions.

[Bradley Thomas (Bromsgrove) (Con)]

The Minister is in no position to lecture on reducing the size of the state, given that when Labour attempted to reduce the welfare bill, it marched all of its MPs up the hill, only to march them down again, when it buckled under the pressure from its own Back Benchers.

[James Murray]

As Members from both sides of the House know, we are determined to get people back into work, because that is the way to bring the welfare and benefits bills down, and to make people better off. What is not the right thing to do for this country is to follow the Conservatives’ plan for £47 billion of cuts, for which they have no plans and that would represent nothing less than a return to austerity. If their £47 billion were to come from cuts to public services, that would mean 85,700 fewer nurses, cutting every police officer in the country twice and cutting the entire armed forces. Funnily enough, none of that detail is in their motion today.

To have proposed the motion is a shame for British politics, because with the Conservatives’ long history, they really should know better. Were it to be the Greens, Plaid Cymru or Reform proposing policies with little regard for the consequences, I would not be surprised because they have never had a chance to implement them, but to see the party that was in charge for 14 years acting this recklessly shows just how far it has fallen.

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[Chris Curtis (Milton Keynes North) (Lab)]

I thank the right hon. Gentleman for his speech, and for his fight and campaign within his party in favour of abundance and against scarcity. I hope it is a fight that he can win, given the damage done by there not being enough of that attitude when the Conservatives were in power. Given that this debate cannot be isolated from the issue of the supply of housing, I hope that at the next election, I will not see Conservative leaflet after Conservative leaflet against building the new homes that this country so desperately needs.

I thank the Opposition for bringing forward this debate, and I will start with a few points on which I hope we can agree. Stamp duty is a dreadful tax. It discourages behaviour that we should want to encourage: people moving out of homes that no longer suit them, and into properties that do. As many others have mentioned, stamp duty deters people from downsizing, which means fewer family homes become available for those who need them. In much of London and the south-east, where housing costs are already painfully high, that makes moving almost prohibitively expensive. When, for various reasons, the demand side of the housing market is struggling, stamp duty is also a barrier to building the homes that this country so desperately needs.

When it comes to the drive to campaign against stamp duty, there is a lot to agree with, and we should find a path to removing it. However, I cannot support the motion for two reasons. First, a tax cut of around £9 billion must come with an honest explanation of how it will be paid for, as has been said. If there are apparently tens of billions of pounds-worth of cuts that we could make to the state, we can only conclude that it was pretty negligent of the previous Government not to make them in their 14 years in power. When they were handing out redundancy notices to police officers, why were they not making those cuts instead? Unfunded tax cuts are either a return to Liz Truss or a return to Tory austerity.

There is a second, perhaps more important, point. I fear that the motion’s focus on stamp duty alone is too narrow. As was mentioned, we need a wider conversation about property taxes. The right hon. Member for North West Hampshire (Kit Malthouse) was wrong in one regard. I used to work in market research, and I know that stamp duty and inheritance tax are not the most unpopular taxes; council tax is consistently the most unpopular.

[Bradley Thomas]

Does the hon. Gentleman regret the fact that his Government have not honoured their pre-election promise to reduce council tax?

[Chris Curtis]

I will make some comments about the unfairness of the council tax system in a moment. We can have a conversation about tax and spend, and there is a much wider conversation to have, but today’s debate focuses on a very specific cut in a very specific part of property taxation, and there is a problem with having that conversation in isolation, rather than having the bigger, bolder, politically braver conversation that I would like the Opposition to start about wider reforms of our property tax market.

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[Dr Sandher]

People in this country who have the right to remain and the right to work, and who have earned social security contributions, can make claims. The hon. Member will know that many people in this country have no recourse to public funds at all. That meant that during the pandemic, for example, despite paying into the system, they could not claim back out.

It is a shame to see where the Conservative party has got to on this stuff, to be honest. There was a time when the Conservatives condemned Enoch Powell, and a time when they joined us, across this House, in believing that every single person, regardless of the colour of their skin, when given the legal status to remain, has rights and responsibilities, like a British citizen. It is such a shame to see where the Conservative party has got to.

The truth is, I think the Conservatives feel ashamed. When they talk about things like cultural coherence, we can hear the dog whistle—across this country, we hear it. I will tell you why, Madam Deputy Speaker: it is because British citizenship is not just about the colour of our skin or the way we look; it is about our values, the way we act, and the way we cohere together—different communities across this nation who speak in different ways. It is a deep, deep shame—dog-whistle away.

[Bradley Thomas]

I call on the hon. Gentleman to reflect on the fact that, regardless of our political differences, it is the Conservative party that has delivered three female Prime Ministers and the first Prime Minister from an ethnic minority background, while his has not managed to present any other leader than a white man.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Before Dr Sandher responds, I ask Members to try to keep this debate in scope.

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[Rachel Taylor]

I am not saying whether stamp duty is a good or a bad tax. I am saying that I do not support simply abolishing it without any thought about the impact that that will have on the poorest people in our society.

The Tories have dressed up this fantasy tax cut as standing up for first-time buyers, but as a former property solicitor, I can tell them for a fact that that argument is completely false. In my constituency, a first-time buyer purchasing a property at the average price pays no stamp duty. This tax cut would be of no benefit to them whatsoever.

[Bradley Thomas]

Will the hon. Lady give way?

[Rachel Taylor]

I will make some more progress.

The average property sale in my constituency would see buyers buying for the second or subsequent time paying between £2,000 and £3,600. That is not an insignificant amount of money for sure, but it is just a tiny fraction of the cost of buying an average home. Comparing that with the kind of house bought by, say, the average Tory party donor—perhaps a £2 million property in central London—we see that such a purchase would attract stamp duty of more than £150,000. That is who this massive Tory tax cut would be helping—not first-time buyers in my constituency, but London-based millionaires.

Let us be clear that this whopping Tory tax cut would overwhelmingly be spent on the wealthiest in our society, while sucking money out of our public services and local communities. It would do nothing to help young people to get a foot on the housing ladder, while giving a whopping tax break to some of the richest people in our society. Let us be absolutely clear that this is not a tax cut for working people; it is a tax cut for the wealthy. It would take money out of our public services and our local communities, while doing nothing to help young people get a foot on the housing ladder. The Conservatives claim that they have changed, but this latest plan shows that they have not learned a thing. It is the same failed ideology, the same unfair priorities—austerity 2.0—and would cause the same harm to my constituents in North Warwickshire and Bedworth and right across this country.

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[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

It is an honour to speak in the debate. In a spirit of cross-party unity, I congratulate His Majesty’s Opposition on their valiant and brave attempts to dress up a political tax cut as a meaningful intervention in the housing market. I have been looking at every single Conservative Member who has spoken and thinking about whether they really believe that such a tax cut would actually make a difference.

[Bradley Thomas]

Will the hon. Member give way?

[Rachel Blake]

I would like to develop my argument a little bit further, and then I look forward to hearing from the hon. Member. I read the Opposition’s proposals with interest, and have been looking to see exactly how they intend to fund their proposed tax cut. I am struck by the fact that the Conservatives want to bring forward even more unfunded proposals. They are not satisfied with their devastation of public services after their attempts at austerity; with crashing the economy, driving up mortgage costs and rents, and driving down the supply of new homes and overall rates of home ownership; or with their botched Brexit deal, which, through its impact on the economy, has wrecked many people’s chance to buy a home. No, they propose yet more ill-thought-through tax cuts.

In the likely event that the Opposition’s ill-thought-through proposals for funding this tax cut are undeliverable, I wonder whether they would cut £14 billion from Labour’s £39 billion investment in genuinely affordable homes. Would they cut £14 billion from the £23 billion that the Government invested in the National Wealth Fund to get our economy going? Would they take money out of our £3.8 billion homelessness fund? The truth is that the Conservative Government’s interventions in the housing market resulted in temporary accommodation use, rough sleeping, mortgage rates and rents going up, and home ownership going down. The Tories pretend to be the party of home ownership, but it is Labour that is absolutely determined to get homes built. It is Labour that is coming forward with proposals to get homes built, and Labour, I believe, that will deliver on that.

[Bradley Thomas]

Does the hon. Member accept that over the last 30 years, the four years with the highest levels of new housing delivery occurred since 2018, under Conservative Governments? She is trying to make the point that stamp duty abolition is a tax cut dressed up as an intervention in the housing market. What on earth is wrong with giving a tax cut to aspirational people who work hard and want to move up the housing ladder?

[Rachel Blake]

For the last two hours, the proposal has been presented by Opposition Members as a meaningful housing market intervention because of their supposed commitment to aspiration. The Labour party has always been the party of aspiration, and it has been the driving force behind social mobility throughout the last century. [Interruption.] Conservative Members know that, and that is why they are chuntering so much.

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[Bradley Thomas (Bromsgrove) (Con)]

It is a pleasure to speak in this debate on this important topic, Madam Deputy Speaker. It is one that I am passionate about. I got involved in politics to make people’s lives better, and to be on the side of those who work hard, do the right thing and aspire for themselves and their family. That is the fundamental point at the core of this argument.

My hon. Friend the Member for Windsor (Jack Rankin) made a great point when he said that this is a moral mission. It is a moral mission to be on the side of those who are aspirational, and to unlock the hopes and dreams of a generation who want a tangible stake in society but have great fears that they will never have it. Stamp duty, for many, is a tax on that dream home, on that bridge between where they are today and where they want to go tomorrow, particularly for their family.

We have heard a lot in this debate about first-time buyers, and it is right that we focus on them; it is particularly shameful that one of the first acts of this Labour Government was to lower the threshold at which stamp duty was imposed on those first-time buyers. But once a first-time buyer has been in their home for a few years and had a child, and maybe a second, and wants to move up the property ladder into a house that will better meet their needs, that is when this tax really starts to bite. Constituents have approached me to say that they are able to afford a mortgage on their next home, and have even identified one that they want to move into, but the stamp duty prevents them from moving.

What strikes me about this argument between the two sides of the House—and, in fact, between Opposition parties as well—is that many make the case that if we removed stamp duty, it would cause house prices to rise. If it was removed as a temporary measure, there would be a chance of that happening, but if it was removed in perpetuity, the housing market would regularise without a huge increase in prices. That is the key to unlocking the aspiration that so many have for themselves and their family.

I do not believe that Labour Members have particularly nefarious intent; I can only conclude that their position really does demonstrate the politics of envy. It is a fact of life that some in society will always have more wealth than others—the scale is always relative—but even if those at the upper end of the wealth scale benefit from the abolition of stamp duty, those further down the chain will also benefit. The great reality of this proposal is that it is universal in its application, so everyone will benefit.

This is fundamentally about unlocking mobility and the aspirations of so many. It applies not just to first-time buyers and those wanting to move up the ladder, but to those who want to downsize, whom we have heard so much about today. There are plenty of constituents across Bromsgrove and the villages who are asset-rich but cash-poor, and who are trapped in larger houses but would like to downsize, should the fiscal incentive be there for them to do so. Stamp duty, in the form of tens of thousands of pounds, is absolutely key in so many cases.

[Dr Evans]

A really important issue, especially for elderly people who are caught in a large home, is social care. We need to make sure that healthcare and support is there as people get older. If they find themselves trapped in a large house, how do we make sure that it is modified? That has an additional cost, which is often lost. Does my hon. Friend agree that freeing up such people to move offers them the benefit of saving money?

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[Bradley Thomas]

My hon. Friend makes a valid and important point. That is one of the great peripheral benefits of this policy, should the Government embrace it, and I encourage them to look seriously at it. I encourage the Government to vote for this motion, even if only to show their intent, and even if they cannot implement it anytime soon.

We have heard about the stimulus effect. The typical spend of a family moving house is around £9,000. My hon. Friend the Member for Windsor pointed out that those employed in trades would benefit from saving that money. These are people who are not necessarily rich; they are hard workers who set their alarms in the morning. They are the very people who have aspiration for their family and want to be able to move up the property ladder.

One of the fundamental ideologies that have emanated from Labour Members is a denial of capitalism and the role that it plays in driving up prosperity. My right hon. Friend the Member for North West Hampshire (Kit Malthouse) made this point eloquently: capitalism is not something that we should be afraid of; it is the biggest driver of prosperity that the western world has known. Labour Members should embrace it with a little bit more vigour.

A point that I have to touch on, because it affects my constituency so profoundly, is the Government’s increase in housing targets. We Conservative Members are not anti-house building, but we believe that house building has to be proportionate. Bromsgrove and the villages is a 79% rural constituency. It really is the green buffer between Worcestershire and the urban sprawl of Birmingham. It is 89% green belt, yet our housing target has increased by a staggering 85%, whereas the housing target in adjacent Birmingham has decreased by over 30%. I have given various Ministers various opportunities to address this point of the Floor of the House, but no one has been able to do so yet, so I can only assume that, in the words of my hon. Friend the Member for Bridgwater (Sir Ashley Fox), the Government are “fiddling” the figures for political reasons. I would welcome it if the Minister could address the disproportionate burden that the Government’s housing targets are putting on rural areas, including Bromsgrove and the villages.

There is something that the Government could do to make the bitter pill of more housing easier to swallow, but they abandoned the idea on day one: make high-quality design a central tenet in the planning system. The previous Government opened the Office for Place, which is an advisory body that advises the Secretary of State on the quality of the built environment. Every single Government, regardless of political colour, should embrace the principles of good design, because they lead not just to good houses, but to better communities. If the Government can convey to communities that new housing is not going to impose red-brick monotony that erodes their sense of identity and character, there will be much more openness from communities to the house building agenda.

[Dr Luke Evans]

My hon. Friend makes an excellent point. One of the biggest concerns I have is that the Government have taken away the funding for neighbourhood plans. We know that neighbourhood plans give villages their say in where planned housing goes, but more importantly they deliver more housing. Does he believe it is short-sighted to take away that funding, which will compound the problem he is talking about—he is discussing the aspect of style and design—of getting communities to take on extra housing?

[Bradley Thomas]

My hon. Friend is spot-on. That is incredibly short-sighted, and I think it will prove to be a false economy.

I urge the Government to embrace good design to provide a justification to my constituents for why they are pursuing the current house building targets in such a disproportionate way across the country. Most of all, I implore the Government to put at the centre of their fiscal plans the scale of ambition that hard-working people have every single day when they set their alarms and go out to work—they want to do the right thing for their families. The Government must realise that pulling the right fiscal levers and cutting the right taxes will stimulate the very activity that will drive the growth they are so desperate to achieve.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Secretary of State.