What Are We Going To Do About George?

George Osborne delivers his Autumn Statement to a packed House of Commons

George Osborne delivers his Autumn Statement to a packed House of Commons

The news wires are burning with reports that the Chancellor, George Osborne, has gone completely doolally. In delivering an Autumn Statement that eviscerated house buyers with aspirations of acquiring property worth more than £935,000 he fired a financial exocet directly into the centre of his parties core constituency. The opposition can't believe their luck as they leave the chamber sniggering to each other.

The rate for property at say the £1.5m price point gives the buyer the unwelcome prospect of coughing up £93,750 big ones; that's as near as damn it £190,000 (actually higher), of pre tax income or a 6.25% blended rate of stamp which is scaled through the above levels. Things get interesting further up the ladder with a £3m property attracting a 9.125% blended rate. 



The £2m+ property market ground to a halt months ago because of political uncertainty. Most people though obviously couldn't care less. Apart from that is, those who rely on such transactions to fuel their own removal, decorating, building, plumbing and so on businesses. The point is, as I never tire of saying, these idiots at the Treasury simply cannot or will not focus on freeing up the economy. This is but one example. The overall tax take will anyway, fall.

I'm sure too that distortions will quickly develop in the market which at the higher price points will simply freeze up and that will have a trickle down effect with some properties becoming overvalued while others find a lower point of equilibrium. You'll probably also see a rush of planning applications to split up houses into two or more flats. 

The net beneficiary of this will again be UKIP who I'm quite sure will benefit from additional donations from frustrated property sellers and their votes....... along with those coming from citizens with laughable broadband, bins that are emptied but once a fortnight, commuters who now cough up 5-7 grand annually to get to work, redundant soldiers, (they haven't cut government departments or the civil service by 23% have they?), and so on.

So Tories, keep up the entertainment for your Labour colleagues. Build expensive railways to nowhere through your core voters homes, then start fracking under them and now over-tax them. It's so original, why hasn't it been done before? Even the old class warrior Gordon couldn't have dreamt this lot up.

On reflection, Treasury Officials agreed they might have chosen the Stamp Duty Rise Focus group with more care