Stamp Duty Land Tax

Rachel Taylor Excerpts

Tuesday 28th October 2025 Commons Chamber

[Sir Mel Stride (Central Devon) (Con)]

I beg to move,

That this House calls on the Government to reduce public expenditure to fund the abolition of stamp duty land tax on primary residences purchased by UK residents, in order to get Britain working, to grow the economy and to give people a stronger stake in their communities through the security of home ownership.

There comes a time in the careers of some in this House when they stand too close to the edge, when they play with fire and when they fly too close to the sun. To continue that astronomical metaphor, we have a Chancellor who has truly thrown herself headlong into a colossal black hole entirely of her making. The Chancellor has trashed our economy and she will blame anybody but herself: the Office for Budget Responsibility, the legacy, the Conservative party, Donald Trump, Brexit—whatever it is, as long as it is not herself.

However, we on the Conservative Benches know the clear truth. We know exactly what has happened to our economy. We know that we have a Government who, when they were in opposition, said that there was no way they would be putting up taxes left, right and centre, yet within 18 short months had done precisely that, layering up taxes on businesses and destroying growth at the same time as talking down our economy. Then there was the fictitious £22 billion black hole which, ironically, was debunked as not legitimised by the OBR at the behest of the Labour party itself. We know that Labour has borrowed colossal amounts of money and is due to spend around half a trillion pounds more than the plans it inherited.

What has been the consequence of that? It has been elevated inflation. We now have the highest inflation in the G7, and the International Monetary Fund tells us that next year we will once again have the highest inflation in the G7. The consequences of that, through monetary policy, are that interest rates will be higher for longer, bearing down on those who have mortgages and on businesses who wish to borrow. Critically, when it comes to our burgeoning national debt, which is soaring under this Government, the costs of servicing that debt are now running at £100 billion a year, rising to £130 billion across this Parliament. That is twice what we spend on defence. Indeed, if the servicing of our debt were a Department of Government, it would be the third largest in Whitehall. None of that money is going on public services. It is simply going to pay off the creditors who are owed money as a consequence of the profligacy of the Labour party.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

Would the right hon. Gentleman agree that Liz Truss’s disastrous mini-Budget impacted on working families up and down this country, resulting in the astronomical mortgage interest rates that they are still struggling to fund?

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[Kit Malthouse]

My right hon. Friend is completely right, and he makes a powerful point. Anybody, whether overseas or here, who comes anywhere in the country, but particularly to London and the south-east, and wants to make a significant purchase is immediately presented with a massive bill that cannot be borrowed. It comes out of any equity that they may have spare lying around or that they may have saved up for years to build towards their housing decision. For the Government to show up and take it at that moment of significance in anybody’s life is extremely damaging. It is the same when the Government show up on the death of a relative and say, “We will take our slice.” Such taxes have enormous salience. As a result, stamp duty and inheritance tax are easily the two most unpopular taxes in the country.

[Rachel Taylor]

The right hon. Gentleman is being generous with his time and is putting forward interesting points. It surprises me that nobody on the Opposition Benches brought these points forward in the 14 years they were in power. Stamp duty land tax is not a new tax; it is a tax that went up under the last Government, yet the Conservatives had brought forward no proposals on it until this unfunded announcement at party conference a few weeks ago.

[Kit Malthouse]

The hon. Lady should not assume from the outward utterances that there was not an internal conversation going on within the party about our tax strategy. Those in the Chamber who shared the Cabinet table with me will know that that was often a vigorous conversation. I will leave it at that.

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[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

The shadow Chancellor would have us believe that the Conservatives have changed, and that the days of Liz Truss and her disastrous mini-Budget are behind them, but we can all see that nothing has changed. Once again, we see the same reckless attitude towards the public finances—cutting public expenditure to fund tax breaks for the wealthiest without being honest with the British public about who pays the price. The shadow Chancellor tells us he can fund this Liz Truss-style tax-cutting bonanza by making £47 billion in spending cuts. I simply ask him: if these fantasy savings are so easy to find, why did the Conservatives not make them during the 14 years they were in government?

[Graham Stuart]

Will the hon. Lady give way?

[Rachel Taylor]

No, not at this point.

We have been here before with the Tories. They tell the public they can slash the state without any downsides, but the next thing we know is that our local library is being shut down, our local swimming pool goes with it and our vital services such as the NHS and schools end up in crisis. My constituents in North Warwickshire and Bedworth have suffered 14 years of austerity once, and they do not want to suffer it a second time. Let us look at some of the real facts about stamp duty.

[Graham Stuart]

Does the hon. Lady think stamp duty is a bad tax?

[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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[Sarah Bool (South Northamptonshire) (Con)]

They say an Englishman’s home is his castle—the place he feels safe and has control of, a place with a sense of permanence. In today’s world, though, we have younger people stuck at the gatehouse, renting, unable to break through into property ownership; and we have older generations locked inside the castle towers, unable to downsize easily and get out, and last winter being cold with the sudden changes in the winter fuel allowance. They are also facing a Government armed with a trebuchet, flinging economic misery at the castle walls, destroying prospects and the foundations.

There is a reason why people like programmes such as “Escape to the Country” and “Homes Under the Hammer”—other daytime programmes are available. They are really popular because they embody the aspiration of the British public to earn, and to purchase and make a true home. The policy in the motion does so much to unlock the potential that we have. Abolishing stamp duty on a primary residence could save young families, especially in London, up to £18,000 on their first home. I am really disappointed to hear Labour Members, particularly the hon. Member for Pendle and Clitheroe (Jonathan Hinder), say they do not believe it is fair to do that. It feels like the politics of envy: given that house prices are so much higher in London and the south-east, this policy is only fair. If that is combined with our announcement of the first jobs bonus, where the first £5,000 of national insurance paid by any British citizen starting their first job will be placed in a personal savings account earmarked for a first home deposit or future savings, it would be transformational.

Stamp duty is, as has been echoed across the Chamber, a terrible tax. I am sure certain Labour Members will tend to agree. It is an additional tax that distorts the market and often stops people moving. We all agree it is complicated—its calculation, the exemptions. I was a commercial property lawyer, and I actually had to complete stamp duty forms. They are an absolute nightmare; they slow down and stifle the market. Particularly for young couples and families who find that dream home that they want to move into, the stamp duty alone is enough to stop them. That should not be happening in this day and age. We need to unlock true aspiration and opportunity, and I fail to see why Labour Members would reject such a policy, which has been welcomed by so many, including their own constituents.

[Rachel Taylor]

Will the hon. Lady give way?

[Sarah Bool]

I will make some progress.

Labour Members sneer when we talk about living within their means. That is something that every single constituent of ours has to do. They have to make those tough decisions not to spend at certain points, or to save, or to work harder, but this Government do not even follow the principles that they ask their own constituents to adhere to.

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[Connor Naismith]

The hon. Member is right to point out that the Conservatives had 14 years in government. Now they are in opposition, they want to talk about all the magical savings that they could make. Why did they not do it when they were in government? It is too little, too late. As I was saying, if you decide that you want to do this, you have to tell us how you will pay for it, and justify that priority over all the other priorities.

[Rachel Taylor]

Does my hon. Friend agree that what has locked young people out of the housing market over the last 14 years is not the existence of stamp duty, but the astronomical rise in house prices? They have gone from being around three times a first-time buyer’s income to more like 10 times in constituencies like mine and his.

[Connor Naismith]

I completely agree. The most common reason I hear from my constituents for their inability to get on the housing ladder is that astronomical rise in house prices.

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[Sir James Cleverly]

You’ve gotta love ’em, haven’t you? Never seen a fence they would not sit on, never seen a position they would not contort around. “These are our principles”, they say, “but so are these, and so are these other ones as well.” It is that clarity that we value from the Liberal Democrats.

[Rachel Taylor]

I will be a little clearer on Labour’s principles: we will not be joining the Conservatives in the voting Lobby because we will not vote for unfunded tax cuts that predominantly serve the wealthy and do nothing to help first-time buyers or ordinary working people up and down the country.

[Sir James Cleverly]

That’s how you do it! That is how you actually have a position—it is the wrong position, but at least it is a position. The hon. Lady keeps talking about unfunded tax cuts, but she is getting her language back to front. We do not fund a tax cut, because it is the British people who fund Government spending, so when Government spending is eased, it eases the burden on the British taxpayer. It is spending that needs to be funded, not a reduction in spending.

I will reinforce what I thought were a number of strong interventions in support of the motion. I was struck by my hon. Friend the Member for Windsor (Jack Rankin) speaking about his own experience trying to get on the housing ladder and how his enthusiasm was diminished by the realisation that stamp duty was going to make it even more difficult. The hon. Member for Pendle and Clitheroe (Jonathan Hinder) made a legitimate point that this tax affects different parts of the country very differently. He made the fair point that there will be many parts of the country where it is not typical that people pay stamp duty land tax, or a significant quantum or scale of it, but that is not a good reason to deny this reduction in cost to those people in the country who do. Although there might not be many in his constituency, I guarantee that he would not have to travel far before he starts to meet people who are being dissuaded from purchasing properties because of stamp duty land tax. Certainly for Members representing constituencies near big cities, wherever they are across the country, or constituencies in the south, significant numbers of people pay this tax.

It has been mentioned by many Conservative Members—too many to single out—that this proposal would positively impact not just the people who pay, or may pay, stamp duty land tax. I guarantee that almost all of us can imagine the streetscape that I am about to describe from our constituencies. There are perhaps Victorian or Edwardian semi-detached or detached houses on what used to be the periphery of the town or city before it expanded beyond that. It will typically be a band of properties populated disproportionately by older couples or older people, who have often been in the constituency for many decades. Their children have moved out and they are now under-occupying those properties with two, three or perhaps even four bedrooms spare, but they are deterred from downsizing because they fear the stamp duty that they will have to pay. Estimates show that 2.8 million people would consider downsizing—or rightsizing, as my hon. Friend the Member for Windsor said—if stamp duty were removed. We would then have a ripple effect throughout the housing market, freeing up family homes for people who are currently in overcrowded accommodation.

Not only that, but the London School of Economics estimates that for every housing transaction, an estimated £6,000 of economic activity is pumped into the local market, with local builders doing refurbishments, perhaps doing extensions and fitting new bathrooms and kitchens, and people buying soft furnishings and white goods—the sorts of things that people buy when they move. What type of business typically provides those goods and services? It is local businesses—small and medium-sized enterprises embedded in their communities. These are the people who are being denied economic activity because this tax is stifling the property market.

We need liquidity in the property market. We need people buying and selling. We need people spending money with local businesses in local shops across the whole of the country. That is what reducing the tax burden on people does; it is what removing the stamp duty land tax will achieve.

Yet on the Government and Liberal Democrat Benches, Members are contorting themselves to find excuses not to reduce this burdensome tax, and I genuinely do not understand why. Some 2.8 million people could release their homes on to the market; if each of those homes had two or three spare bedrooms, that would immediately eclipse the 1.5 million homes that Labour is desperately trying to convince the country will be built under its tenure. It could be done almost immediately, without a brick being laid, and—more importantly—without the need for any Government subsidy.

That is what the House is saying no to, but not those on the Conservative Benches. We on these Benches understand aspiration. The Conservative party has always been the party of aspiration. We have always been the party that helped people to get on and up the housing ladder—a noble and normal aspiration, and one that we support, even if other hon. Members do not support it.