Labour accuses Tories of bunging £1.3bn to second home owners in coronavirus recovery package

Chancellor of the Exchequer Rishi Sunak delivering the summer economic update in a statement to the House of Commons, (UK...

Chancellor of the Exchequer Rishi Sunak delivering the summer economic update in a statement to the House of Commons, (UK Parliament/Jessica Taylor/PA Wire) - Credit: PA

Labour has accused the Tories of delivering a £1.3 billion 'bung' to second homeowners and landlords in its coronavirus recovery package.

The opposition urged Rishi Sunak to reverse what it said was an 'unnecessary subsidy' after it emerged a stamp duty holiday would be extended to the purchasers of holiday homes and buy-to-let properties.

As part of Sunak's emergency measures announced on Wednesday, most homebuyers in England and Northern Ireland will not pay stamp duty on the first £500,000 of their purchase between July 15 and March 31.

However, Labour said the Treasury had later 'slipped out' an announcement that it would cover purchases of second homes - although they will still be liable to the additional higher rate which starts at 3%.

Shadow housing secretary Thangam Debbonaire said the cost to the taxpayer could be up to £1.3 billion and that the money could be far better spent plugging the gap in local government finances.

Have your say

Send your letters for publication to The New European by emailing and pick up an edition each Thursday for more comment and analysis. Find your nearest stockist here or subscribe to a print or digital edition for just £13. You can also join our readers' Facebook group to keep the discussion and debate going with thousands of fellow pro-Europeans.

You may also want to watch:

'It is unacceptable that the chancellor tried to sneak out this huge bung to second homeowners and landlords while many are desperate for support,' she said.

'He should be targeting support to those who need it, not helping people invest in buy-to-let properties and holiday homes.

Most Read

'An unnecessary subsidy for second homeowners will only worsen the housing crisis by reducing the supply of homes overall.'

Conservative Party co-chairman Amanda Milling, however, dismissed the claims, saying Labour had no plan for the economy.

'It beggars belief that Labour is against plans to help thousands of families across the country,' she said.

'Our plans mean 90% of people getting on or moving up the property ladder will pay no stamp duty at all.

'Sir Keir Starmer's Labour will turn whichever way the wind blows. They say different things from one day to the next to try and score political points and chase headlines.'

Become a Supporter

The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.

Become a Supporter
Comments powered by Disqus