Jane Hutt takes opportunity to discuss reform of Stamp Duty with construction sector

Richard Jenkins, Jane Hutt AM, Francine Morgan and Marc Jehu

Finance Minister Jane Hutt today took the opportunity to discuss the devolution of stamp duty to Wales with representatives from the Federation of Master Builders Wales and Jehu Project Services when she visited the Royal Buildings development in Port Talbot.

When completed the Royal Buildings site will consist of 46 affordable rented flats and four retail units. Jehu Project Services , part of the Jehu Group have been appointed as the main building contractor for the project.

Following a tour of the site Jane Hutt said:

“In the current economic climate, the need to boost jobs and growth is the Welsh Government’s first priority. The steps we are already taking - both by using the powers we currently have, and also through our use of European funding – are playing an important role in supporting economic recovery.

“But we want to do more, and the housing sector and the wider construction industry have an absolutely vital role to play. That is why I believe it is so important that powers over stamp duty land tax should be devolved to Wales.

“In my meetings with the construction sector, I have been struck by the strength of the consensus that exists in favour of devolving and reforming stamp duty. If we were to gain powers over this tax, I am certain that we would be able to reform it in a way that made it simpler, fairer and more efficient – benefiting both home builders and home buyers, and boosting this key sector of the Welsh economy.

“I believe that this view will come through loud and clear in the UK Government’s ongoing consultation about devolving the tax, but I would encourage everyone involved in the industry to make a submission to the Treasury’s consultation.”

During her visit the Minister also discussed the recently published Construction Procurement Strategy. Jane Hutt added:

"Investing in construction provides a great opportunity to deliver much more than new buildings and roads. By applying intelligent and innovative procurement strategy and policy, we can use this investment to help provide jobs, training and contract opportunities which is key to our agenda to support jobs and growth in Wales.”

Richard Jenkins, Director FMB Cymru said:

"We welcome the Minister taking the time to speak to FMB members directly on important issues such as procurement and the Stamp Duty Land Tax. Our policy on SDLT is clear - the devolution of this tax is vital, and as it has been recommended already by the Holtham and Silk Commissions, the UK Government should devolve the powers to Wales without delay. The construction sector could benefit greatly by this tax if it could be tailored to suit the needs of the Welsh construction and business sector."

Marc Jehu, Managing Director at Jehu Projects, said:

“The Royal Buildings project is nearing completion and has played a significant part in Jehu Group’s success in the past year. It has also provided job security and additional new jobs. Once completed, the site will provide fantastic homes for individuals or families, in addition to a platform for small businesses to grow.

“With a house building company within the Jehu Group, we would welcome reduction in stamp duty on homes in the entry level of the market, provided it is not off set by increases in middle and higher end of the market. Wales is woefully short of quality executive homes as well as affordable homes and if we are to attract companies into Wales, we need to offer appropriate homes. We look forward to participating in the consultation process.”