Rishi Sunak unveils the Conservative manifesto, highlighting plans for £13 billion in tax cuts alongside a revival of the Help to Buy scheme. These measures aim to boost home ownership and reward hard work.
The manifesto details over £13 billion in tax cuts targeted at earners, parents, and pensioners. These cuts will be financed through welfare system reforms and measures against tax avoidance. A notable proposal includes a 2p reduction in national insurance.
Additionally, a new £1 billion scheme is set to assist first-time homebuyers, allowing them to purchase properties with just a 5% deposit. This initiative, inspired by the previous Help to Buy scheme, will cover homes priced below £400,000. The scope of the previous scheme was restricted to £250,000 outside London and £450,000 within the capital.
The Conservatives also plan to permanently abolish stamp duty for first-time buyers on properties up to £425,000. Sunak asserts that this will foster an “ownership society,” granting more individuals the security and pride associated with owning a home.
Sunak’s vision emphasises allowing working individuals to retain more of their earnings, contrasting with Labour’s approach. He remarked, “Keir Starmer takes a very different view. He says he’s a socialist, and we know what socialists always do: take more of your money.” By aligning with Thatcher and Lawson’s legacies, Sunak aims to reward hard work and reduce dependence on welfare through sound money management.
In a BBC interview, Sunak acknowledged the rising challenges of home ownership. He committed not only to building houses in suitable locations but also to supporting young adults in acquiring well-paying jobs to save for deposits. The new Help to Buy scheme will provide a 20% government equity loan for new-build properties, facilitating home purchases with a 5% deposit. This scheme will be active for three years, with no interest on the government equity portion for the initial five years. Developers will cover a quarter of the equity loan costs.
Labour has countered with its own proposals to aid first-time buyers, including the permanent institution of the existing mortgage guarantee scheme. Set to conclude in June next year, this scheme currently sees the government acting as a loan guarantor, encouraging lenders to offer low-deposit deals. Labour asserts that their plan would enable over 80,000 young people to enter the housing market over the following five years.
The Conservative manifesto, as outlined by Rishi Sunak, presents a detailed plan aimed at enhancing home ownership and rewarding hard work through substantial tax cuts and a revamped Help to Buy scheme. Meanwhile, Labour offers its own measures to assist first-time buyers, indicating that home ownership will remain a significant issue in the upcoming political discourse.
