A senior minister criticized Kemi Badenoch’s proposal to eliminate stamp duty as “desperate” and reminiscent of a previous minister’s failures, according to sources.
Pat McFadden, the Secretary of State for Pensions, accused the Conservative party of introducing tax changes without proper funding and failing to learn from past mistakes, particularly a botched mini-budget overseen by Liz Truss.
To inject some excitement into a lackluster party conference, the Tory leader promised to scrap Stamp Duty, labeling it a burdensome tax hindering the housing market.
Mr. McFadden expressed skepticism, stating, “We’ve seen this before with the Tories announcing unfunded tax changes. It occurred in the past, and it’s becoming a recurring theme.”
The minister highlighted the damaging effects of previous unfunded tax cuts in 2022, which negatively impacted the economy.
Ms. Badenoch unveiled the proposal at the Tory conference, later revealing that the abolition would only apply to primary residences, excluding second homes, properties bought by businesses, and overseas buyers.
The elimination of Stamp Duty is expected to benefit buyers of high-value properties the most, as it currently applies to properties worth more than £125,000.
First-time homebuyers purchasing properties under £300,000 would be exempt from paying stamp duty.
The Conservative party estimates an annual cost of £9 billion for the plan, intending to cover it through £47 billion in spending cuts to various sectors. However, economists have raised concerns over the vagueness and feasibility of these proposed cuts.
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