Where does one start with such a tangled mess of taxes and the feeble thinking behind the economic changes that have been of detriment to almost everyone in the UK in recent years.

First on the list has to be the reduction of Stamp Duty Land Tax (SDLT).  I predicted in the Autumn Statements of 2014 and 2015 that these taxes would prove pernicious, punitive and would have the reverse affect from that intended. Time has proven me accurate. They have killed off a vibrant property market, damaged the industries that benefitted from home movers or those acquiring investments, reduced stock in the market place, ensured that less revenue has been achieved by the HMRC and actually increased the values at the lower end of the property market whilst decimating the values the upper end, almost entirely.

Secondly, it would be of great benefit to small businesses to reduce Business Rates, cut employers contributions for National Insurance, provide grants for new equipment and machinery to all companies with less than 10 staff members and whose turnover is less than £2m per annum. Additionally these tax incentives would allow faster and more stable growth. Expansion requires a larger workforce, it assists unemployment, and, adds to the tax take, not only from employees, but also from the operations themselves that may then stand a chance of becoming large, revenue paying, behemoths.

Thirdly, reduce the proposed taxation on landlords, as currently rental housing stock is drying up due to the onerous new rules currently being imposed on private investors, especially those who have mortgages. If you create an income deficit for people who already own or buy rental property they will either sell what they own and/or not buy anything else. It’s simple economics. Less stock equates to higher sale and rental prices.

Also, allow the market forces to control themselves. Yes – housing prices have risen exponentially over the last few years. Yes – it has become unaffordable for many young people to own their own home.  Yes – wages have not kept up with house prices – but the real reason is supply and demand. There has been no provision for new housing (or at best very little) and a huge need. The very simple answer is staring the government in the face – build more homes!

Successive political parties have failed miserably in this regard, in part due to local authorities in recent years charging vast sums to developers in order to grant planning permissions under Section 106 (S106) Agreements.  If sense were to prevail, by reducing the tax burden, making the planning process simpler and quicker it would allow residential builders to construct homes more inexpensively and rapidly. With more available stock, prices will come down of their own accord, without need for intervention. It’s a win, win. The Inland Revenue will take in more tax such as VAT, Corporation Tax, SDLT and the like, the local authority will obtain more affordable, modern, eco-friendly housing and extra Council Tax contributions, the public will be provided with good quality homes and in the process carpet fitters, curtain makers, painters, decorators, interior designers, gardeners and a myriad of other workpeople will in turn grow and employ extra staff, who will pay tax, who will then climb up the ladder in order to afford to buy or rent a property and thus employ further services, keeping the wheels of industry moving.

Lastly, let overseas investors buy in the UK and by all means tax them fairly. Cut corporation tax for overseas businesses, even if only during the Brexit period, to bring companies into or incentivise them to remain in Great Britain.

This country became a worldwide force by allowing wealth to grow, by fostering business people and allowing the nature of things to be organic. It is wise to remember that an environment where entrepreneurs are born and prosperity nurtured creates prosperity from the top down.

My previous predictions came true and perhaps these will too. So if anyone, particularly Mr Hammond, is listening join the force of reason and let’s ensure that Britain remains the international, financial and economic heavyweight is has always been.

With the current international and national uncertainty one might believe that selling ones largest asset (or certainly one of the largest assets) at this time would be a poor idea, but interestingly in markets such as these it is often the reverse, as buying opportunities present themselves to those with the gumption and financial means to purchase. Now is probably the time to ‘bite the bullet’ and make that move.

Published in London Property Magazine October 2017