Stamp Duty Land Tax (Temporary Relief) Bill

Saqib Bhatti Excerpts

2nd reading & 2nd reading: House of Commons
Monday 13th July 2020 Commons Chamber

[Saqib Bhatti (Meriden) (Con)]

I am speaking in favour of this relief of stamp duty because, as we all know, housing is a huge element of our economy. Making it easier to buy and sell will lend our economy a much needed boost across the board. The housing market, like the rest of the economy, has endured a huge shock, with the first fall in house prices in eight years and the number of transactions falling by 50%. We all knew that was going to be the case, but the case for intervention was also clear.

Real estate in the UK is the cornerstone of our economy. Housing stock is worth more than £7 trillion, and the real estate sector is responsible for tens of thousands of jobs. For many homeowners, confidence and security in the worth of their homes allow them to feel secure in how they live their lives. Housing is not just bricks and mortar, but the stable anchor that creates the foundation for our lives. Stimulating the housing market will boost confidence throughout our economy and create jobs.

I welcome the continued commitment to remediate brownfield sites, which will mean that more land becomes available, increasing supply while alleviating pressure on our green belt. This cut will protect, support and create jobs, from estate agents and surveyors to builders and manufacturers. Along with the green homes grant, the Government are providing the housing sector and homeowners with some welcome assistance and support, as we make our way to recovery as a nation. It will mean less money paid in tax and more money in the pockets of those who may want to spend it in other parts of the economy. More homeowners, fewer taxes, more security—that is a fundamentally Conservative solution to one of the biggest crises in a generation.

Economists like to make predictions, and normally I am cautious of such forecasts, mostly because ultimately our economy is made up of people. It is not just numbers and theory, but individuals who behave in ways that spreadsheets and graphs cannot always predict, and I say that as someone who spent most of their professional life as a chartered accountant. However, one projection that seemed a certainty was that our economy would suffer some potentially devastating consequences following the shock of covid-19. Fortunately, in our Chancellor we have someone who has a calm head and a steady hand at the helm, ready to weather the storm.

For me, this cut is not just about stimulating demand, nor is it just about recognising the importance of housing as an economic asset. It is also about recognising that allowing people to own a house is to allow them to own a stake in society. Cutting stamp duty will have not only huge economic benefits, but huge societal benefits. We cannot just talk about buyers and sellers as if they are numbers on a chart. They are newly weds moving to a new home to begin a new life, and children spending Christmas in a new house, perhaps having their own bedroom for the first time. They are retired grandparents, downsizing so that a new family can move in and make new memories.

I encourage my right hon. Friend the Chancellor to review the positive impacts of the stamp duty holiday on the economy and to consider the benefits of maintaining the cut for longer. When we are back in smooth waters, perhaps he will look at some of the long-term reforms that may be available for the tax.

We say that a man or a woman’s house is their castle, and that is just as true now as it has ever been. The right to own a property is the cornerstone of individual liberty. I do not mean mansions or second homes; I mean, as William Pitt once said:

“It may be frail—its roof may shake—the wind may blow through it—the storm may enter—the rain may enter—but the King of England cannot enter!”

To own one’s home is more than a financial decision; it is safety, security and independence, and I commend the Chancellor for his role in allowing more people to achieve all three of those things.