Stamp Duty Land Tax

Debate between Tom Hayes and Ashley Fox

Tuesday 28th October 2025 Commons Chamber

[Sir Ashley Fox]

That is another valuable point. This tax cut benefits not just the housing market but the jobs market, and therefore the whole economy. Our politics ought to empower people, not load them with additional burdens. This is an important measure for young people, because, as we acknowledge, they face higher costs and more competition for housing than their parents did.

To be credible, we must explain how we will pay for this measure. That is a valid question, and, unlike some parties in this place, we will not make promises without a plan for delivery. The measure is possible as part of a wider package of economic reform, spending discipline and growth creation. The Government were elected on a policy of “going for growth”, yet everything that they do seems designed to bring about the opposite. A jobs tax makes it more expensive to employ people; higher business rates make it more expensive to conduct business in a property; the changes in agricultural and business property relief—increasing inheritance tax—reduce investment by family businesses; and the Employment Rights Bill makes it more expensive, time-consuming and difficult to employ people. The Government have turned on the spending taps and levied record levels of tax, while at the same time implementing measures that increase unemployment and make Britain less competitive. Every Labour Government has led to higher unemployment, and it is deeply regrettable that in every month since the general election, unemployment has risen. I do not think that the Government are malevolent; they simply have no clue about how business works.

[Tom Hayes (Bournemouth East) (Lab)]

The Conservative party’s position on the green economy is now to remove some of the support for it. Figures show that the green economy is growing by around 10%; it is fuelling job creation and often provides better-paid jobs. Does the hon. Gentleman believe that it is in the economy’s interests to cut the legs out from underneath the green economy?

[Sir Ashley Fox]

Well, I am amazed to hear that the real economy is growing by 10%. That must be a forecaster I have not heard of! We believe it is possible to cut welfare spending. In fact, a few months ago, the hon. Gentleman’s party believed it was possible. The Government put forward a modest proposal to reduce welfare spending by £5 billion, which had our support, yet, unfortunately, at the first whiff of rebellion, the Chancellor caved. That shows that the Government have no idea how finance works, how business works or how confidence works. They undermined their credibility by being unable to undertake even the smallest reform.

We can announce the abolition of stamp duty because we have promised to put Britain on a different track. Our golden rule means that, for every pound we make in savings, half will go on reducing the deficit and paying down our debts. We will reduce spending by £47 billion a year, and have announced plans to do so. About half of that will come from cutting the welfare bill, including stopping the ballooning bill for Motability cars for those with mild mental health issues. Some £8 billion of savings will come from reducing the civil service to the size it was before the pandemic. We will save money by closing asylum hotels, reserving other benefits to UK nationals, and coming to a more credible position on net zero.

By taking those tough choices, we can cut taxes and help the economy. We estimate that abolishing stamp duty will cost £9 billion, which is set against the savings we have outlined. By pledging to remove it, we are signalling that we believe in growth, in enterprise and in enabling every citizen to build their future.