Money Blog: What will happen to taxes and interest rates under Labor – and how will benefits change? | Join the live Q&A | UK news

Sky News Business Presenter Ian King says…

Stamp duty is a rotten tax and if you want to promote growth, scrapping it would certainly be a good way to do it. But with Stamp Duty bringing in £11.6 billion in the last financial year, it’s likely the government will want to keep it in place.

The different fees you refer to reflect the fact that house prices are cheaper in the North East than in London.

SDLT is very much a London tax – capital accounted for 36% of total SDLT paid in 2021-22, the latest year for which figures are available.

Homebuyers in the London Borough of Westminster alone paid more SDLT than the entire North West of England. I doubt that those differences you refer to will change unless house prices in London collapse and house prices rise elsewhere.

You are right to point out the pernicious effects of this.

In some London boroughs, primary schools are beginning to close, as parents find they cannot live in the capital and raise a family. It is moving – reducing demand for London school places in some areas.