Budget Resolutions and Economic Situation

Lord Hanson of Flint Excerpts

Thursday 21st March 2013 Commons Chamber

[Vince Cable]

I remain a champion of the mansion tax and will continue to champion it with my colleagues on the Liberal Democrat Benches. The Chancellor is going to consult on how this major reform to the housing market will be implemented. We recognise that there are many complex products in the mortgage market. For example, many parents support their children’s housing acquisitions. Those kinds of transactions have to be properly analysed before the scheme is launched.

[Mr David Hanson (Delyn) (Lab)]

I will be going back to my constituency tonight and would like to give the Budget a fair wind if I could. Will the Secretary of State therefore confirm that the scheme will not apply to second homes or to people who can afford to provide such a subsidy themselves?

[Vince Cable]

As I said a few moments ago, there are two schemes. The first, which is the development of a scheme that is already operating, most emphatically does not apply to second homes. The major mortgage guarantee scheme is complex and the Chancellor will consult on how to draw the boundaries around eligible mortgages.