My initial feeling on the Chancellor’s Emergency Budget of 2010 was one of a lost opportunity. I think the news management by the Government over the last couple of weeks was very successful and my personal feeling was that the pain was not as much as I had anticipated. I was sure that Capital Gains Tax would increase, I thought that there might have been some developments with Stamp Duty and I thought that VAT may have gone to the 24% mark. However, in terms of the property market, I think that this has been a wasted opportunity. Where were the initiatives to help the first time buyers? Where was the initiative to increase investment into refurbishment of existing housing stock? Where was the assistance for the developers and builders to enable them to start building again?
I was filled with dismay at the levy imposed upon banks as whilst this certainly played to the popular press the banks will recoup this money leading to more expensive charges for mortgages, and other bank products.
Leading on from the banks, I was also disappointed to listen to the Chancellor’s mansion house speech the day before. As I have mentioned in previous blogs the way of controlling an overheating housing market is to be more innovative in your use of Capital Gains Tax. It is not to limit mortgages. Limiting mortgages will simply limit competition amongst lenders making borrowing more expensive, stifling the housing market and curtailing economic growth. In relation to the housing market the Budget of June 2010 was a wasted opportunity.
The opinions expressed in this blog are of the author only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this blog is accurate and up to date. The blog is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Blog users should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this blog. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this blog may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this blog is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2020
Members of the Law Society of Scotland.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.