Liz Truss to cut stamp duty in push for economic growth

Move comes as average UK house price leapt by 15.5 per cent annually in July

Liz Truss is set to announce plans to cut stamp duty in the government’s mini-budget this week in an attempt to drive economic growth, according to reports.

Truss believes cutting stamp duty is likely to encourage economic growth, allowing people to move or get on the property ladder.

Two Whitehall sources have told The Times that cuts to stamp duty would be the 'rabbit' in Friday's mini-budget which is being hailed as 'growth plan'. The Prime Minister and Kwasi Kwarteng, the chancellor, have been working on these plans for a month ahead of Friday's announcement.

The statement on Friday will include plans to reverse national insurance rises and freeze corporation tax. There is also talk that Truss is considering to bring forward the cut to income tax by 1pm in the pound to 2023, but this is likely to be confirmed in a full budget before the end of the year.

Truss has previously said that cutting stamp duty is critical to stimulating the economy, and in her previous Treasury roles she claimed high rates of stamp duty 'clogged up' the housing market and slowed transactions.

During the pandemic, the stamp duty threshold was increased to temporarily £500,000 to help stimulate the stagnant properly market.

Responding to reports, Tim Farron Liberal Democrat MP tweeted: 'How to make the housing crisis in Cumbria even worse: give an extra incentive for people to buy homes they dont need, pushing them even further out of reach of those who do need them.'

It comes as the average UK house price leapt by 15.5 per cent annually in July marking the biggest increase in 19 years according to official figures. The percentage increase was double the rate recorded in June, when typical property value increased by 7.8 percent annually.