MPs warn buy-to-let tax measures risk damaging whole economy

by Mark Alexander

20:11 PM, 12th February 2016
About 3 years ago

MPs warn buy-to-let tax measures risk damaging whole economy

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MPs warn buy-to-let tax measures risk damaging whole economy

As the Ides of March grow ever closer, George Osborne’s political capital seems to be finally running out and the knives are drawn.

His Rt Honourable Conservative friend Andrew Tyrie seems to be one of the first in line to sink in the dagger. Former Head of the FSA/FCA Tyrie is now Chairman of the Cross Party Treasury Committee.

In THIS REPORT, the cross-party Commons Treasury Committee said that jobs, output and productivity could all suffer if a fall in the supply of privately rented homes led to a reduction in labour market mobility.

“Were the measures taken to curb buy-to-let to have a substantial effect, they would come at a cost to the wider economy,” the committee said.

“Access to a well-functioning, affordable housing market, including for private rented properties, has been widely recognised to be crucial to labour mobility, and hence the overall efficiency of the labour market.

Any impediment to labour mobility will reduce employment, economic activity, and the economy’s long-run productive potential.

Keep looking over your shoulder Georgie Boy. There is no such thing as paranoia. Your worst fears can come true at any moment. Strange how paranoia can link up with reality now and then isn’t it?

buy-to-let tax measures risk damaging whole economy

 



Comments

Gareth Wilson

22:52 PM, 12th February 2016
About 3 years ago

Mark, this document is a great find.

Osborne's PR machine is simply not powerful enough to alter the inevitabilities of mathematics and cause and effect.

Now thankfully, members of his own party are seeing through the spin, realising the reality that Osborne's policies will create for the Tories and the country.

The man is a short-term opportunist and long-term troublemaker.

Gareth Wilson

23:23 PM, 12th February 2016
About 3 years ago

I'm wondering if anyone has access to this article:

http://www.thetimes.co.uk/redbox/topic/tory-policies/georges-marvellous-meddling

Gareth Wilson

23:30 PM, 12th February 2016
About 3 years ago

With these parralel developments...

http://www.telegraph.co.uk/news/politics/georgeosborne/12154770/retirement-crisis-pensions-tax-raid.html

... No wonder landlords can't afford not to fight for their property businesses.

Michael Holmes

12:57 PM, 13th February 2016
About 3 years ago

First came the Omni-shambles budget, now the Tenant- tax Tornado, it is hard not to laugh, we have a Chancellor who can't count, a Prime Minister who can't negotiate and a Governor of the Bank of England who doesn't understand capitalism. Where can we turn I wonder?

Steven Burman

8:52 AM, 15th February 2016
About 3 years ago

Reply to the comment left by "Michael Holmes" at "13/02/2016 - 12:57":

Perhaps it is the Cross Party Treasury Committee that should be in charge of the economy rather than George 'Captain Clueless' Osborne. Thank goodness for Andrew Tyrie and his committee - perhaps there is hope after all? (Won't be holding my breath tho'!!!)

Luke P

11:24 AM, 15th February 2016
About 3 years ago

Reply to the comment left by "Michael Holmes" at "13/02/2016 - 12:57":

For the first time I am completely unsure with which political party to place my vote.

UKIP? If not for their policies, for the shake up it would give the incumbents and the embarrassment factor...

James Fraser

12:13 PM, 15th February 2016
About 3 years ago

UKIP always appealed to me as back up to the Conservatives.

I see there's a vote of no confidence petition for Jeremy Hunt currently at 200,000 signatures.

Can we have one for Osborne? Think how many would sign!!

terry sullivan

15:09 PM, 15th February 2016
About 3 years ago

Carney is a g s apparatchik he left Canada before

Jonathan James

15:46 PM, 15th February 2016
About 3 years ago

Reply to the comment left by "Gareth Wilson" at "12/02/2016 - 23:23":

Hi Gareth

This is the article. Not much of direct interest beyond the headline:

George’s marvellous meddling
Is George Osborne over-reaching himself? Speaking to Tory MPs in recent days, it is a common theme.

The chancellor’s dominant position as the frontrunner to be next Tory leader is wearing a bit thin already.

Today Sam Coates reports in The Times that Osborne has seized control of a campaign budget worth hundreds of millions of pounds.

Leaked documents reveal plans to slash the communications budgets of Whitehall departments and put funds into a central pot controlled by the chancellor and prime minister.

One Whitehall source said: “George is becoming more and more like Gordon Brown every day.”

And we all know how much Osborne enjoys those comparisons.

As Sam reports in the paper:

The Cabinet Office presentation shows the chancellor alongside David Cameron at the top of a flowchart setting out responsibility for making decisions about the fund. This has provoked claims of a power grab.

Until now the Cabinet Office rather than Treasury worked alongside Downing Street on communication strategy.

Senior Tory figures fear the move will enable Mr Osborne to promote pet projects, such as the Northern Powerhouse, at the expense of existing campaigns, including those overseen by leadership rivals.

These could include the Home Office’s domestic abuse campaign and the Department for Communities and Local Government’s “fire kills” publicity drive.

The budgets for the 80 campaigns, costing about £300 million a year, are the responsibility of individual government departments.

Osborne’s attempt to dominate Whitehall is exposed by the leak of a 12-page presentation, dated February 3, and entitled the Single Government Communications Campaign Budget.

Gareth Wilson

18:57 PM, 15th February 2016
About 3 years ago

Reply to the comment left by "Jonathan James" at "15/02/2016 - 15:46":

Thank you for digging this one out Jonathan. I was looking forward to reading this particular article.

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