Sunak Blunder: Stamp Duty Holiday

The problem with the economics of the Tory party is that they are based on house price inflation, without which they seem to flounder about what to do. Rishi Sunak showed promise earlier in the pandemic with his lavish support packages to keep the basics going and promised that the government would invest its way out of the debt mountain which would result.

But one of his first actions was to introduce a stamp duty holiday to cushion the effect of the expected drop in house prices caused by the pandemic. It seemed mad at the time and we now know it was. It triggered a surge in house prices which, for most, absorbed whatever savings they might of made, while costing the taxpayer a loss of revenue stream had the tax remained in place. So it was a lose lose. The time when estate agents and mortgage lenders are given a licence to print money should be long gone.

There is a great deal more to be said about the economy, but for the moment this point, critical among many, is enough. As Sunak fleshes out his plans there will be a lot more.