Media Centre
On 9 October, the Chancellor delivered the 2007 Pre Budget Report and Comprehensive Spending Review to the House of Commons. Areas of interest to building societies include:
- Saving Gateway
The Chancellor announced that the Government is initiating research into the system requirements necessary to roll out the Saving Gateway scheme, with a further announcement being made in the Budget next year.
- Capital Gains Tax
From April 2008 there will be a single rate of capital gains tax paid by individuals of 18%, but taper relief and indexation allowance will be withdrawn.
- Affordable housing
The Government announced a number of initiatives to try to alleviate longer-term problems of undersupply of housing. These include grants to local authorities for planning and building more houses in their area, further proposals to promote the use of empty properties and funding support for infrastructure development in designated Growth Areas.
Aimed at supporting homebuyers, the Government is looking at reforming the stamp duty treatment of initiatives such as the First Time Buyers Initiative and making longer-term fixed rate mortgages more affordable. In his speech the Chancellor stated his desire that the supply of fixed rate mortgages of ten years or more be increased. He will make a further announcement in the Budget.
- Unclaimed assets
The report also notes the contribution of the building society sector to the development of work relating to unclaimed assets.
The full report can be viewed here
