Sturgeon Makes Tax Breaks Plea To Darling

Deputy First Minister Nicola Sturgeon has called for the Chancellor, Alistair Darling, to grasp the opportunity to provide major investment for housing in Scotland.

Ms Sturgeon has said now is the time for the Chancellor to inject major capital public sector investment in affordable housing in Scotland.

Ahead of his pre-Budget Report, Ms Sturgeon said Mr Darling must take bold steps to invigorate the housing market, and help Scots home owners who have lost their jobs.

The Deputy First Minister suggested to Mr Darling key steps to help the Scottish economy:

• Injecting major capital public sector investment in affordable housing in Scotland.
• Boosting Scotland's construction industry by applying a permanent reduced VAT rate of five per cent for Registered Social Landlords repairing and maintaining their housing stock.
• Applying a temporary reduced VAT rate of five per cent for homeowners repairing and renewing houses.
• Speeding up changes to Income Support for Mortgage Interest (ISMI), where the UK Government helps pay interest on a mortgage. The Scottish Government is pressing for help to start from January 2009, to cover interest on mortgages up to £175,000.
• Address some of the barriers that hinder large scale investment in the housing market, particularly in the private rented sector, which is bearing much of the brunt of the credit crunch in terms of increasing demand and rents. Revisit anomalous rules on stamp duty for bulk purchases and encourage institutional investment by revisiting the rules for residential Real Estate Investment Trusts(REIT).

Ms Sturgeon said: "Next week, Alistair Darling has a gilt-edged opportunity to do the right thing by lending a helping hand to boost Scotland's housing industry.


"There has never been a more opportune time for the Chancellor to inject significant funding for much needed affordable housing across Scotland.

"At a time when so many jobs are being lost, he should also provide a boost for Scotland's construction sector, by applying a permanent reduced VAT rate of five per cent for Registered Social Landlords repairing and maintaining their housing stock."

(GK/JM)