All eyes on Healey as Budget Day approaches
There are now just days to go before former housing minister John Healey delivers his first budget as Chancellor.
With new Prime Minister Andy Burnham announcing an ambitious programme of reforms across the board, the country is waiting with bated breath to see how he will fund them all.
Earlier this autumn there were rumours circulating of proposals to increase Capital Gains Tax rates in line with inflation, but these have been scotched by the chancellor following concerns over the damage to the economy if wealthy individuals moved abroad or deferred the sale of assets.
We will, of course, need to see what is announced on the day, but this is a positive sign that John Healey values the role of private enterprise when it comes to supporting economic growth and labour mobility.
Instead, he is expected to target banks, with cash raised used to fund measures to address the cost-of-living crisis and announce. He is also expected to give more details of the proposed Your First Home scheme, to help first-time buyers.
When will the budget take place?
The Autumn Budget will be held next Wednesday, with John Healey to deliver his statement in the House of Commons following Prime Minister's Questions, shortly after midday.
What does the NRLA want to see?
Ahead of Wednesday’s budget our chief policy officer Chris Norris has outlined our key calls.
He said: “As a former Housing Minister, the Chancellor knows full well the pressures facing tenants and the private rented sector.
“His Budget on Wednesday gives him the chance to tackle them head on and improve affordability and choice for renters.
“The Budget needs to do more to boost the supply of homes to rent to give tenants greater choice about where they live.
“With an average of ten people chasing every available rental property, the tax system needs a fundamental overhaul to encourage long-term investment in vital new rental housing stock.
“Alongside this, housing benefit rates need so they reflect rental prices as they are today.
“The Resolution Foundation has found that the gap between Local Housing Allowance rates and the lowest 30 per cent of rents is now at a record high.
“Unfreezing rates would provide vital support to more than 900,000 households, and the analysis shows that the overwhelming benefit would be felt by tenants rather than being absorbed through higher rents.”
When it comes to support for landlords Chris says the Government needs to do more to help the sector meet its ambitious energy efficiency targets, adding: “The Chancellor also needs to develop a bespoke package of support to help responsible landlords make the investments needed to meet the Government’s energy efficiency targets.
“With an October 2030 deadline, time is running out to ensure the necessary support is in place and deliver the improvements to rented homes we all want to see."
Join our webinar
We are hosting an exclusive member webinar following next week’s budget to help unpack what any announcements will mean for you and your business.
The event will be held on Zoom between 2pm and 3pm the day after the budget, Thursday, 29th June and will include a summary of the key announcements, their impact and how to prepare for upcoming regulatory changes.
More information
To download the NRLA’s submission click the button below:
