More Stamp Duty changes? Spending plan and OBR forecast brought forward

Changes to Stamp Duty could be up in the air again after the Treasury confirmed Chancellor Kwasi Kwarteng’s debt-cutting plan will be published three weeks earlier than planned on October 31.

Kwarteng had been expected to publish his fiscal statement on November 23 but has come under increasing pressure to bring the date forward and outline how the Government intends to pay for the £43 billion worth of tax cuts.

The Chancellor’s mini-budget spooked the markets last month and sent the pound tumbling.”

The Chancellor’s mini-budget spooked the markets last month and sent the pound tumbling. Although it has since recovered yesterday The Bank of England announced it was increasing the daily limit on bond purchases in a bid to calm markets.

The extra measures are aimed at ensuring an ‘orderly end’ to its emergency bond buying scheme which was introduced to stop the collapse of several pension funds.

STAMP DUTY

Kwarteng’s mini-budget announced notable cuts to Stamp Duty with nothing to be paid for the first £250,000 of a property’s value – double the current amount allowed. The threshold for first-time buyers was also to be increased from £300,000 to £425,000.

Other notable announcements included a cut in the basic rate of income tax to 19p in the pound from April next year and cancelling next year’s planned rise in Corporation Tax to 25%.

He also announced the 45% higher rate of income tax was to be abolished although this has since been axed.

FISCAL

Kwarteng has been facing growing calls to produce his fiscal statement which will outline how the Government intends to pay for the £43bn worth of tax cuts in the mini-budget and how it plans to reduce debt.

Writing to Treasury Select Committee Chairman Mel Stride, Kwarteng said: “I have previously written to inform you that an economic and fiscal forecast will be published alongside the Medium-Term Fiscal Plan on 23 November. I have decided to bring this date forward to 31 October.”

The Chancellor’s fiscal statement will now be published prior to the Bank of England announcing its latest decision on interest rates on 3 November.