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Suspend stamp duty, says broker

Suspend stamp duty, says broker

Category: Mortgages

Updated: 01/04/2009
First Published: 01/04/2009

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A UK broker is calling on the Government to suspend stamp duty indefinitely, claiming it would cost relatively little and benefit the country's financial institutions.

Chancellor Alastair Darling has indicated that there will be no further fiscal stimulus in the forthcoming Budget, but John Charcol says that a temporary cut to stamp duty would provide a lot of stimulus in the current environment.

Figures show that revenue from stamp duty has deteriorated in recent months because of the slump in the housing market and, as such, suspending the duty would cost approximately £2 billion - one sixth of the cost of the one year VAT cut.

Ray Boulger, senior technical manager, said that as the housing market is such a critical component of the wider UK economy, any improvement in the sector would mean a marked improvement in the fortunes of banks and building societies.

"It would at least reduce, and possibly avoid, the need for significant further provisions," he added.

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