BUSINESS ORGANISATIONS AGREE VIEW ON DEVOLUTION OF STAMP DUTY

Richard Jenkins, FMB Cymru

The UK Government's Commission on Devolution in Wales ('Silk Commission') has recommended the devolution of certain tax and borrowing powers to Wales, including Stamp Duty Land Tax.  The UK Government is yet to fully respond to its Commission, but has today announced its intention to consult with business before reaching a decision. Jane Hutt, the Welsh Minister for Finance, has also met with business leaders over the last couple of months - to hear business’ initial views on the way that Stamp Duty Land Tax operates at the moment, and how it might be reformed in the future should the UK Government agree to devolve the tax.

The CBI and Federation of Master Builders (FMB Cymru) have been working closely with the Silk Commission and the Minister on the issue of Stamp Duty Land Tax, and will continue to work with the Westminster Government over the upcoming months following their announced intention to consult with business in advance of a decision.

If used effectively, devolution and reform of stamp duty could be an effective tool for growth, as a result both organisations are in support of the devolution of Stamp Duty to the Welsh Government, and that there should be a clear timeframe set for the decisions to be taken. The Welsh housing industry has been one of the worst hit during the recession and is struggling to recover, and 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.

Richard Jenkins, Director of FMB Cymru said:

“We welcome the Treasury’s intention to seek the views of business on this matter and therefore will make our policy clear. We urge UK Ministers to respond positively to the recommendation to devolve Stamp Duty made by the Silk Commission. 

“Our view is that Stamp Duty Land Tax should be devolved to the Welsh Government as a matter of urgency. The Welsh housing industry is in a poor state of health and Stamp Duty could be used to creatively to support the sector, and to offset the accumulated costs of development, which are set to rise.”

Emma Watkins, Director of CBI Wales commented:

“The views of the CBI are very clear in supporting the devolution of stamp duty.  If used effectively, devolving and reforming stamp duty could be used as a tool for growth, stimulating housebuilding and supporting home buyers. We will engage with the Treasury over the summer and make the views of business known.

“The lack of certainty and clarity on a deadline for Silk is not helping business - both those in Wales and those looking to invest.  CBI will continue to engage with all parties for a swift resolution, in the interests of driving forward the economy - and growth.”

Link to announcement:

http://www.parliament.uk/documents/commons-vote-office/July_2013/17-July-2013/6.Treasury-Devolution-in-Wales.pdf