The Intermediary Budget day live feed

The world has a 400% debt to income ratio, never been higher!

There have never been more people in work and the population is larger than ever.

The US grew lots post Covid but increased their debt significantly to do so.

The Uk has not grown since Covid but not increased debt exposure.

The consensus is that debt needs to come down whilst growth needs to rise and to make that happen we need some innovative thinking. Do I think we will see that today? unlikely!

So what will we see today…

No unfunded spending cuts. Any spending will likely come as a result of cutting back elsewhere or rasing taxes elsewhere

Support to the public through NI cuts

Investment into green sustainable energy to make this country less reliant on imports and in control of prices and supply

Pension support

Investment in technology, R&D, in an attempt to keep up with China and the risk posed to cyber security, in particular quantum computing.

Even the world’s most observant optimists would struggle to find any positives for the property market in today’s budget. With an election coming up, I’m not sure simply trying to avoid another ‘trussenomic’ disaster is ambitious or impactful enough.

Groundhog day! A grey, dull and drab budget from a robot-like chancellor and a double glazing salesman of a Prime Minister. The only marginal changes to the fiscal regime had widely been leaked and nothing of note was added. The lack of stimulus to business and the wider economy is surely a sign the white flag of election defeat is waving. Struggling households will be left dismayed. This was an opportunity to provide for those on low income whilst stimulating growth by raising personal allowances, cutting VAT and introducing tiered corporation tax similar to personal tax bandings. Kier Starmer and Rachel Reeves must be doing high kicks on the way out of the Commons, free to introduce a raft of bold policies to restructure our economy after the election.

What a dissapointment that the UK government have not come up with a proper scheme to aid first time buyers onto the property ladder. The talk of 99% mortgages was just a headline grab. Shame.

May as well have been delivered by AI - didnt think i have seen such a flat budget for many a year. House development, NEW Build schemes and mortgages ....nothing to help this dwindling market - expected to be honest, which confirms higher interest rates for longer. Also abolishing £90 cost for a Debt Relief Order, confirms that the Government except and would appear encourage the average consumer to fall into more debt.

Far from the white-knuckle ride that was the Truss Budget, most of this Spring Budget was pretty uninspiring. Even the embarrassingly childish behaviour of MPs didn’t inject excitement.
Perhaps the uneventful nature of the budget was in fact a blessing in disguise.
Initially it seems this is a Budget that focussed on stability, and SWAP rates should react positively to this. If they do, we see them reduce in the coming days. As a biproduct of this, better rates will then start to become available to borrowers. If you believe it, it was also reassuring to hear The Chancellor say that Inflation should fall below 2% in just a few months. This surely puts a lot of pressure on the Bank Of England to reduce the Base Rate which will further improve opportunities for borrowers.
Sadly, no announcements to help Mortgage Borrowers specifically and nothing to stimulate the property market which could have been a missed opportunity ahead of an election.

Capital gains tax reduces to 24% - This measure aims to stimulate the housing market by encouraging more transactions, with the expectation of increased revenue. While this tax cut represents a step in the right direction, addressing the broader issues plaguing the UK's housing market requires a more comprehensive and bold approach. The reduction in capital gains tax, though beneficial, is unlikely to be a panacea for the challenges faced by many seeking affordable housing. The UK's housing crisis, characterized by high prices and a shortage of affordable homes, necessitates a multifaceted strategy that goes beyond tax adjustments. To truly transform the housing landscape, more innovative and courageous reforms are needed, targeting the root causes of the crisis. This could include measures to increase the supply of affordable homes, improve the accessibility of financing, and ensure a fairer distribution of housing resources.

Another paltry vote-winning trick of smoke and mirrors from the Chancellor. Pulling the Furnished Holiday Lettings regime out of the hat like a despondent bunny rabbit won’t raise anything like the sums intended, and will damage the tourism economy across our coastal communities. Deterring second home owners from renting out their properties will leave properties unoccupied as owners won’t see the yield worth the effort of renting out. Hollow out whole communities, abracadabra.