Osborne opts for the tax politicians love...

... and economists love to hate.

George Osborne's budget morning story, that Stamp Duty will go up to 7 per cent on properties over £2 million, shouldn't really surprise us. It has strong echoes of Gordon Brown's 2010 budget day story about hiking Stamp Duty up to 5 per cent on homes above £1 million in order to fund a tax cut for first time buyers. It's the tax that politicians have grown to love, and economists love to hate.

Not that the Chancellor will care much but he should expect plenty of gnashing of teeth from the dismal profession. Stamp Duty is after all a tax on labour mobility (a key economic resource), so it keeps people living in places they'd rather leave and makes it less likely they will move to take new jobs (though how much of a barrier this will be to those in a position to fork out £2m is far from clear). And the way it is currently structured results in major distortions in the housing market as small increases in house price generate large leaps in the tax owed.

And yet Stamp Duty is a popular tax with politicians. Why so? In part because the revenue it raises have risen quickly with house prices. But also because it is judged to be a less painful tax to get the public to go along with compared to many others. People pay it at a time - uniquely - when they are spending very large sums of money that the stamp duty tax bill is tagged onto. A tax bill of £20,000 incurred when buying a house for £500,000 may feel less painful to many than getting an annual bill of around £2,000 for 10 years for living in the same house. And unlike serious reform of our out-dated council tax system, or indeed the introduction of a proper Mansion Tax, increasing Stamp Duty doesn't require a wider revaluation - that most dreaded of political events. Nor does it suffer from the fabled problem of hammering the old lady on a low income living in an expensive house.

A full-blown mansion tax it certainly isn't, but 7 per cent stamp duty on properties above £2m is a tilt towards taxing big wealth. It's not a tax rise to please the wonks, it doesn't open a much needed new chapter in property taxation, and it falls far short of what the Lib Dems were aiming for. But it is still a symbolic move which will bring in a bit of extra revenue without creating many screams or administrative upheaval. Osborne will be pleased.

A tilt towards taxing big wealth? Photograph: Getty Images

Gavin Kelly is a former Downing Street adviser to Gordon Brown and Tony Blair. He tweets @GavinJKelly1.

Daniel Berehulak/Getty Images
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Commons confidential: Away in Pret a Manger

Corbyn's lunch, a Keith "Vazz" hunch and the New Left Book club.

Comrade Corbyn, despite the pressures of leadership, remains the Anne of Green Gables of British politics, maintaining an almost childlike joy in everything he does. Pride of place in Jezza’s Westminster office is a Lorraine Kelly mug. Corbyn asked for the memento after appearing on the popular telly host’s ITV show – where the pair discussed his interest
in manhole covers.

There’s no record, as far as I can ascertain, of Kelly requesting a Corbyn mug. And yet the sustained abuse Corbyn receives from Labour critics, Conservative enemies and the Tory press isn’t generating hostility on the streets. People still clamour for selfies with the bearded lefty. My snout sat in awe in a Pret a Manger (Comrade Corbyn likes to pop out for his own sarnies, rather than dispatch a flunky) as the queue disintegrated, with punters hungry for snaps.

The Corbyn apparatchik and London City Hall escapee Neale Coleman said: “The one thing I learned from Boris Johnson was never say no to a selfie.” Corbyn must hope he absorbed more than that.

Perhaps the unlikeliest odd couple in parliament is Labour’s Warley Warrior John Spellar and the purple shirt Nigel Farage. Both went to the private Dulwich College in south London. Spellar, who spearheaded his party’s anti-Ukip campaign before the election, won a free scholarship and likes to remind Farage that the Kipper’s fees would now be £18,000 a year. “I passed the exam, too,” sniffs Farage, “but my father earned too much, so we had to pay.” One school, two backgrounds.

Trade unionists no longer regard attacks by the Tory press as just a badge of honour. Aslef’s president, Tosh McDonald, a train driver, wears a black T-shirt with the slogan “Hated by the Daily Mail” on it, after being denounced by Paul Dacre’s organ. I suspect Labour’s Keith Vaz is unlikely to revel in a message sprayed on the side of a van in Leicester. The fastidious chair of the home affairs committee is entitled to challenge at least one inaccuracy in the statement: “KEITH VAZZ IS A KNOB.”

“Any idiot in opposition who argues that government legislation can somehow be got through without programme motions should be taken out to the nearest lunatic asylum.” Who said that? Ken Livingstone? No, Kevan Jones. In June 2010. How times, and language, change.

To the launch of the new Left Book Club, where a director of the Corbynista reading circle, Anna Minton, waved a personalised glossy invitation to join the Institute of Directors. The Pall Mall bosses’ club’s direct mailing system is way off target.

I wonder: what could expelled Tory trickster Mark Clarke have on Grant Shapps?

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 26 November 2015 issue of the New Statesman, Terror vs the State