The Chancellor of the Exchequer will make his Budget Statement to the House of Commons on Wednesday 23 March 2011 at 12.30pm.
Pre-Budget comment from Neil Warman, chief commercial and finance officer, HML:
"I welcome the Government's acknowledgement of the importance of first time buyers to the UK housing market through the £250m scheme designed to help people earning less than £60,000 to raise a deposit. With the current high cost of living many young people are struggling to save money for a deposit so this will be timely news.
"Only time will tell if the scheme will be successful given the limited success of previous schemes to help people onto the housing ladder - my concern is that the cost of living, student debts, the threat of rising unemployment and reducing house prices may be driving a generational shift in the attitudes to home ownership.
"These issues are compounded by the lack of available mortgage products, the reasons for which are well documented."
Pre-Budget comment from Mark Goodwin, RICS Director of External Affairs:
"This Budget provides the Government with a chance to encourage growth and innovation in construction and property, providing much needed jobs, tackling the housing shortage and ensuring that businesses have a continuing supply of high quality premises.
"With house-building at a desperately low level, it is essential that the Government takes steps to attract investment into the residential sector.
"More strategic and efficient management of public sector property assets has rightly been identified as a golden opportunity for the Government to make savings of around £5 billion over the next ten years and release some £20 billion through disposals.
"Lead times in property can be lengthy and short-term cuts can have unintended long-term consequences. The success of the Government's emerging strategy on public sector property asset management will depend in no small measure on attracting, retaining and developing talented professionals."
Pre-Budget comment from Adrian Coles, Director-General of the BSA:
- ISAs
"The Government's commitment to ISAs is welcome, however we believe that the regime could be further improved by permitting transfers from stocks and shares ISAs to the cash product. This would provide more product flexibility for savers and represent a consistency of approach."
- Support for struggling homeowners and Stamp Duty
"The Government's commitment to the continuation of Mortgage Rescue, and the 12 month extension to the Support for Mortgage Interest (SMI) criteria, is sensible. We would, however, urge the Government to consider paying SMI at the same rate as the borrower's mortgage to ensure that vulnerable borrowers continue to receive adequate support.
"Obtaining a mortgage remains very challenging for first-time buyers, who must raise a large deposit. Transaction costs act as a further barrier to house purchase, so we call on the Government to make permanent the exemption from stamp duty for first-time buyers on properties under £250,000.
"The Government should also go a step further and look at reforming the current 'slab' structure of the tax - it's time stamp duty for all buyers was reviewed."
- Diverse financial services
"The BSA welcomes the commitment by the Government to foster diversity, promote mutuals and create a more competitive banking industry. Keeping a reformed Northern Rock independent of the big banks would be good for competition, and we would urge the Government to seriously consider the benefits of remutualisation.
"A re-launched and remutualised Northern Rock can repay the taxpayer stake over time. A deferred payment profile can give the optimum outcome, both returning the full value to the taxpayer and achieving other public policy goals, such as increased stability and competition."
Pre-Budget comment from John Cridland, CBI Director-General:
"The Chancellor must do all he can to create the right conditions for businesses to flourish and create much-needed employment.
"We want an all-action Budget that will boost exports, unleash investment and remove barriers for high-growth firms. That means improving export finance for fast-growing smaller firms, tackling delays in the planning system and making the UK a more attractive place to invest by enhancing the competitiveness of the tax system.
"The Government should also apply the mantra ‘think small first' when shaping employment law, because if it gets it right for the smallest firms, it gets it right for all businesses."
The CBI's proposals for boosting exports include:
- pushing ahead with making ECGD more accessible to smaller exporters
- strengthening UKTI by ensuring it is supported across Whitehall departments and can fully exploit new markets for UK businesses.
The CBI's measures to stimulate investment include:
- ensuring the fast-track planning system delivers timely consents for strategic infrastructure
- encouraging the development of the medium-sized corporate debt market to boost business growth
- improving the Enterprise Investment Scheme (EIS) to bridge the funding gap for larger SMEs requiring between £2m and £10m
- piloting Growth Zones to attract investment.
To remove barriers for businesses to grow and create jobs, the CBI is calling for the Government to:
- avoid re-localising the Uniform Business Rate to prevent the
