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Alistair Darling rejected a third request for an immediate meeting with estate agents as tension grew over suggestions to lift stamp duty.
Whitehall sources told The Times yesterday that there was increasing irritation within the Treasury over the fallout of the stamp duty proposal, which Mr Darling and department aides have been left to field. The Chancellor has “no immediate plans” to meet the National Association of Estate Agents despite repeated attempts by the group's chief executive to meet him and Caroline Flint, the Housing Minister.
Peter Bolton-King said that he had written to the Chancellor for the third time, enclosing details of a survey his organisation carried out that showed one in four estate agents had seen agreed house sales fall through as a direct result of the uncertainty.
He told the Chancellor: “I fully appreciate that you are considering a range of options and wanted to wait until the Pre-Budget Statement. However, our survey is very worrying and the housing market is now going downhill so fast that urgent action needs to be taken. Amongst other things, a more confident market clearly helps those who are in danger of being repossessed.”
But in a sign of a growing rift between Mr Darling and No 10 over the issue, Treasury aides said that the Chancellor was adamant that he was not going to be pushed into taking any action on stamp duty.
“At the end of the day, the Treasury did not brief this story so we did not cause this problem,” one aide said.
Last week the Chancellor refused to rule out that he planned temporarily to suspend stamp duty in an attempt to stimulate the stagnant housing market. Whitehall sources suspect that Downing Street, desperate to get out some good news to give a boost to Gordon Brown's battered reputation, floated the story last week. A spokesman for Downing Street insisted last night that that was not the case.
Mr Brown is also considering a one-off windfall payment, of up to £150, for parents struggling to pay fuel bills this winter. The move, which officials emphasised had not yet been given final approval, would help more than seven million families in receipt of child benefit. In the past, winter fuel payments have been made only to the over-60s, who will receive about £250 this year.
Sir Brian Bender, Permanent Secretary to the Department for Business, Enterprise and Regulatory Reform, was overheard discussing the plans in front of fellow passengers on a GNER train between Leeds and London.
A spokesman for the department said yesterday: “The protection of those least able to heat their homes is a priority for the Government. We will continue to work with energy companies, amongst others, on measures to help the most vulnerable to reduce the amount of energy they use and to lower their bills.”
The Prime Minister hopes that the economic package will help to revive his fortunes in the face of plummeting poll ratings and growing discontent within his Cabinet.
Trade unions and a coalition of MPs have privately anointed a “dream ticket” of Alan Johnson, the Health Secretary, and Jon Cruddas, who came third in the deputy leadership race last year, to run for the leadership should a vacancy arise. The plan is seen as a defence against any move by David Miliband, the Foreign Secretary, to mount a leadership bid.
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Has LABOUR not done enough damage?? How much more doamage are us British going to let this goverment get away with - If they were answering to share holders in the corporate world they would all be sacked.
LETS HAVE AN ELECTION
James, London,
PLEASE PLEASE PLEASE step down and let somebody else take over. Everything this government is now doing is taking us further down the tubes, trying to patch over the holes.
bob travels, stevenage,
Don't dither, darling. State that you are not going to touch Stamp Duty (Land Tax) and let the housing market reach its natural level ASAP.
Tony, Yorkshire,
How can it be fair when both Gordon,Tony and the Managing director of the company I work for will get £150 to pay their gas bill and a child free couple on min wage will not.
Mitch, Wolverhampton, England
It's not a question of "stamp duty" or bank lending that has created a virtual standstill in an over inflated house market. It is to greater extent the actions of greedy estate agents, house sellers and gullible buyers that is mostly to blame. The happy by product at least, is less estate agents!
Ian, Brisbane, Australia
Anthony, Devon,
You don't know a lot about recent history do you Anthony? When we were raising our children under a Tory government we got so little help that it was neither here nor there. I now heavily resent having to constantly subsidise everyone elses.
judy, Liverpool, England
So Mr Darling's Treasury didn't know about the stamp duty idea and Sir Brian Bender (is this name from central casting ?) broadcasts the £150 proposal -on a train ?
I am alone in being a bit worried that our country is not being managed very well?.
M Reid, Northampton,
I thought this government was constantly banging on about diversity and equality?
Why then are the single people out there who don't have children treated as second class citizens? It seems to be perfectly legal to discriminate against people who don't have a boyfriend.
Melanie, Wales,
The Estate Agents are very good at putting pressure on The Chancellor saying that many sales have fallen through because of his indecision on stamp duty. What I would like to know is, have they reduced their fees to encourage the housing market to prosper?
D. Barrowclough, Burnley, Lancs
"As a childless couple we don't want to subsidise potentially richer people because they have children."
--But weren't you children once? Back when you were young taxpayers subsidised your eduction, health, playparks, etc.!
Anthony, Devon,
I'll take MY £150 (it's a tax rebate not a gift from Gordon) - but I'll still vote this incompetent administration out as soon as possible for their gross economic mismanagement.
Policy by press leaks is not tactical - it's the pathetic puffery of a panicked party with no principles or strategy.
Huw Sayer, London, UK
It isn't just parents who are struggling to pay their bills. All low earners are having a very bad time and let's face it, there are more low earners in Britain than we have ever had in the past. People on low pay with no children are subsidising just about everybody else. It is completely immoral.
judy, Liverpool, England
NuLab decision-making procedure-
Dither, dither, equivocate, procrastinate, deny everything, dither some more.
It worked for Northern Rock! NOT!
For goodness sake and the sake of a dying country, Gordon, get out and admit you have lost it.
Roger Bingham, Lauzun, France
Move over Darling - he is the worst Chancellor ever and wishy washy to boot !!!!
ian payne, walsall,
As a childless couple we don't want to subsidise potentially richer people because they have children. As for the stamp duty farce that's the final nail in the housing market coffin. Why don't they just stop meddling, messing up our economy with pathetic attempts to keep their noses in the trough
TC, London, UK
It would be obscene if high-income parents in receipt of child benefit were also given £150 for fuel. No reasonable taxpayer would deny support to those in genuine need, but the single and childless cannot be expected to approve state handouts to those better off than themselves. If Labour wants to help families (and everybody else) then they should reduce taxes why not start by removing VAT on heating oil?
A.W. Millar, Ballyclare, Co. Antrim
As a potential first time buyer this stamp duty rubbish isn't going to influence when I buy.
I'm not buying as property prices are falling fast back to normal levels from their overinflated prices. These drops have a far bigger influence on me waiting rather than 1% stamp duty charge.
Gavin, London,
Treasury fury, do we care, these people bleed us dry in saturated taxes!
Ina, Bristol,