Business in Wales met with representatives of the Welsh and UK Governments, including Jane Hutt, the Welsh Minister for Finance, today to further discuss the devolution of Stamp Duty Land Tax. The UK Government is consulting with business before reaching a decision and Federation of Master Builders (FMB Cymru) and CBI have both reiterated their support for this tax to be devolved.
The CBI and FMB Cymru have been working closely with the Silk Commission and the Minister on the issue of Stamp Duty Land Tax. Both organisations agree that, if used effectively, devolution and reform of stamp duty could be an effective tool for growth.
Richard Jenkins, Director of FMB Cymru said:
“The Welsh housing industry has been one of the worst hit during the recession and is struggling to recover. Stamp Duty has the potential to add a much needed injection of growth into the market, at a time where costs of development are set to increase. The Welsh Government already has responsibility for land and housing, and stamp duty land tax if used correctly could be an important tool to increase activity in the housing market.
“Our view is that Stamp Duty Land Tax should be devolved to the Welsh Government as a matter of urgency and that there should be a clear timeframe set for this process. Clear mechanisms need to be agreed and put in place for business to continue to be consulted during the process of devolving the power, and continue to be consulted regarding the most effective way to use this power once it is devolved to ensure it is a progressive tax.”
Emma Watkins, Director of CBI Wales Chaired the meeting at Cathays Park today. Following the meeting she commented:
“CBI members had a constructive discussion today with Treasury and Welsh Government officials on stamp duty devolution. As was clear from this morning's meeting, business engagement is critical to achieving successful devolution and reform of the stamp duty land tax regime in Wales.
“A stronger housing market benefits everyone and a reformed SDLT regime, tailored to Welsh needs, that attracts investment to Wales by increasing market activity is within our reach. To ensure market confidence and business certainty, this is a journey business and government must continue to take together. CBI looks forward to working closely with the Welsh Government on this process."
