Shane Ross (Independent)

Stamp duty is one of the most controversial issues to be raised in this budget. The effect of stamp duty, which is undoubtedly a tax, is difficult to explain to people. The cheap and obvious political thing to do would be to abolish it in respect of first-time buyers. We need to explain this complicated issue to people, rather than mislead them. The decision taken by the Government today is right, although I am not sure how it will work or whether it will work. It is infinitely preferable to double the level of mortgage interest relief for first-time buyers than to give stamp duty back to the developers. I do not think anybody knows what the result of abolishing stamp duty for first-time buyers would be. My instinct and that of most impartial economists I have heard talking about this matter is that, depending on who it is given to, it would simply result in the transfer of a substantial amount of money from the Exchequer to the hands of developers. If one really wants to benefit first-time buyers, it is far more equitable and effective to do what the Government did today.