Reforms to stamp duty are among the many policies proposed by the moderate branch of the Conservative Party to encourage councils to build more housing for young people.
In his budget next month, Jeremy Hunt has been urged to priorities reducing direct taxes for working people over eliminating inheritance tax, which benefits “the most wealthy.”
A member of the Conservative Party affiliated with One Nation has cautioned the Chancellor that failure to tackle “everyday challenges” such as high taxes, the cost of living, and childcare could potentially result in Labor securing a majority in the upcoming election.
The coalition, comprised of moderate party members of parliament, has put forth a set of eight policy recommendations they expect Mr Hunt to incorporate during the budget session on 6 March.
The initiatives encompass a multi-year agreement on the funding of childcare, a pledge to ensure that graduates repay student loans at average interest rates, modifications to stamp duty intended to encourage local councils to build additional dwellings, and a tax on foreign owners of unoccupied luxury apartments
bought as investments.
In addition to advocating for the Chancellor to allow first-time buyers to use up to 25% of their tax-free pension savings towards the down payment on their first home, the One Nation group has demanded that all sources of income, including earnings, benefits, and dividends, be taxed at the same rate.
One Nation’s Vision for Economic Growth
The chairman of the One Nation caucus of Conservative MPs, Damian Green, stated that “reducing taxes and allowing people to buy their own homes and invest in their future” was “the best way” to stimulate the economy.
He stated that this is what the public has always believed, and as a result, they have always placed their trust in our party to priorities sound money and delivery over tax cuts that benefit only the affluent, such as the inheritance tax.
“The Chancellor must use the budget as an opportunity to reduce taxes, stimulate economic growth, and return more funds to the pockets of ordinary, hardworking citizens.”
“This is an opportunity for us to show the electorate our solidarity with them and the measures we are taking to mitigate the burdens they face in their daily lives.
We run the risk of incurring the detrimental consequences of a Labor government if we do not take this action.
Mr. Hunt recently recanted his commitments to substantial tax cuts in the budget, stating at the end of last month that the fiscal “room” he had in the autumn, when he reduced national insurance from 12% to 10%, was unlikely to be available again.
There were newspaper reports at the end of last year suggesting that Rishi Sunak might reduce the approximately 4% of the population that pays inheritance tax. However, Downing Street dismissed the report as “speculation” and declined to comment further.
Debate Over Inheritance Tax Impact
Currently, the tax is levied at 40% and is applicable to estates exceeding £325,000 in value. However, certain exemptions may limit its payment to estates of greater worth.
Advocates of the tax contend that it is crucial for promoting social mobility, whereas detractors label it a “death tax” for its application to pre-taxed earnings.
Furthermore, it has been reported that any potential tax cuts Mr. Hunt may contemplate could necessitate a reduction in government spending.
The International Monetary Fund (IMF), however, stated last month in a significant intervention that Mr. Hunt should not be contemplating tax cuts.
Preserving high-quality public services and making “critical” investments to stimulate growth, according to the economic organization, require greater spending than is currently accounted for in the government’s budget plans.
