Chancellor Gordon Brown’s decision to raise the stamp duty threshold to £120,000 to help first time buyers has been welcomed by the timber industry and related sectors.
Mr Brown’s Budget, which describes the UK economy as “stable” with a predicted growth of 3-3.5% in 2005, is also being widely interpreted as a sign of an imminent election.
Andrew Howarth, chairman of Howarth Timber Group Ltd, said: “It is a forerunner to an election. The benefits to our industry include the increase in the threshold on stamp duty. I think that will give more impetus into the bottom end of the housing market.”
He also welcomed moves to cut red tape for business and a continuing freeze in fuel duty. He said fuel costs represent one of the largest cost bases for merchants.
Bryan Woodley, chief executive of the UK Timber Frame Association, said: “The single most important thing is the stability of the economy, with 50 consecutive quarters of growth. That is the biggest factor and underpins the market, giving it confidence.”
He said the increase in stamp duty from £60,000 to £120,000 could help the construction sector. But he thought it would have minimal effects in London and the south-east due to high house prices.
Mark O’Brien, head of public affairs at the Timber Trade Federation, said: “We’re glad there has been no movement in the wrong direction on business taxation and pleased that some steps are being taken to reduce red tape.”
The chancellor has also frozen corporation tax, capital gains tax, the climate change levy, aggregates levy and the company car tax.
