Jump to content
House Price Crash Forum
gruffydd

Welsh Assembly Votes To Block Sipps

Recommended Posts

Just got this from a housing activist friend - don't know what it'll mean in practice - I hope that Plaid can opt Wales out of SIPPS. I know many believe that SIPPS will have a limited impact on house prices - and I tend to agree on that point - even so, I think this is a positive move.

Gruff

Plaid Cymru – The Party of Wales

Wednesday 2 November 2005 – for immediate release

Plaid blocks Gordon Brown’s second home plans

The Assembly today (Wednesday 2 November 2005) voted to block Chancellor Gordon Brown’s plan for Self Invested Personal Pension Schemes, which gives higher earners a tax break for investing in second homes.

In the Assembly debate on affordable homes, Plaid Cymru’s Shadow Social Justice Minister Leanne Wood AM put forward an amendment asking the Labour Assembly Government to make representations to the Treasury to exclude Wales from a Treasury plan that would give wealthy individuals a tax break on second homes purchased as part of their pension plan.

Despite the abstentions from the Labour party, the amendment was surprisingly passed, Ms Wood commented:

“I’m delighted Wales has decided to oppose Gordon Brown’s policy of giving tax breaks to the rich who invest in second homes. That policy means local people can not afford to live in their own communities and local schools and shops are forced to close. Plaid Cymru has consistently opposed Tory and Labour right wing housing policies of which SIPPS is just another example.”

Plaid Cymru’s Shadow Environment Minister, who is responsible for planning, Helen Mary Jones AM commented:

"SIPPS is an irresponsible policy which will have an awful affect on communities all over Wales. My regret is that the New Labour AMs were not willing to support our amendment. Nevertheless, the amendment has been passed and the message will be taken from Cardiff to Westminster that we don’t want Gordon Brown’s reckless policies to be implemented in Wales.”

Diwedd / Ends

Notes to Editors

1) The National Assembly for Wales unanimously voted for the following Plaid Cymru amendment today:

“Calls on the Welsh Assembly Government to make representations to the UK government for properties in Wales to be excluded from SIPPs.”

“Deplores New Labour’s support for the new pension funds, Self-Invested Personal Pensions (SIPPs) which will enable the wealthy to own and profit from second homes ownership in Wales while many people in Wales are living in unfit accommodation or spending an increasing amount of their income on housing.”

Edited by gruffydd

Share this post


Link to post
Share on other sites

That is really positive action by the assembly which is surprising!

But really good news as I can see cottage burning happening again otherwise. I am from mid wales and a lot of the country cottages are being bought up at really expensive prices and locals are totally priced out of the market with communities being destroyed- history is repeating itself once more.

Be interested to see how they will enforce that though!

Share this post


Link to post
Share on other sites

Yes, I think the government has got to try and defuse the situation as I don't like what I'm seeing down here in the West - getting bitter to say the least. If cottage burning did start up again it would cause a great deal of broader economic damage. Anyway, we'll see what happens.

I don't think the Assembly can enforce it - suspect they'll have to try and persuade Brown and Co.

Gruff

Edited by gruffydd

Share this post


Link to post
Share on other sites

Yes, I think the government has got to try and defuse the situation as I don't like what I'm seeing down here in the West - getting bitter to say the least. If cottage burning did start up again it would cause a great deal of broader economic damage. Anyway, we'll see what happens.

I don't think the Assembly can enforce it - suspect they'll have to try and persuade Brown and Co.

Gruff

Unfortunately, the government has little incentive to do anything to help rural voters (who are presumably those priced out by SIPPS buying second homes). Across the UK they have never really voted Labour in the past and are unlikely ever to do so in the future.

Much more likely to stir the government into action is the prospect of urban 30-something FTBs getting angry about SIPPS and house prices. This group surely contains a much larger group of potential Labour voters.

frugalista

Share this post


Link to post
Share on other sites

The thing is though that it is about public perception. If the WA votes against SIPPs it will, even in some small part, had an impact on people's minds. People, for example, who have been holding on to second or third homes in Wales waiting for next April might now decide to cut and run.

Share this post


Link to post
Share on other sites

Be interested to see how they will enforce that though!

There is no possibility of English pension funds being allowed to hold residential properties located anywhere in the world other than Wales, which appears to be what Plaid Cymru are asking for. Looks like gesture politics to me.

Share this post


Link to post
Share on other sites

Unfortunately, the government has little incentive to do anything to help rural voters (who are presumably those priced out by SIPPS buying second homes). Across the UK they have never really voted Labour in the past and are unlikely ever to do so in the future.

Much more likely to stir the government into action is the prospect of urban 30-something FTBs getting angry about SIPPS and house prices. This group surely contains a much larger group of potential Labour voters.

frugalista

They do in Wales and Scotland. Even in England there are a lot of rural and semi-rural Labour MPs from '97. Local people priced out of homes must have been a prime part of their vote.

If the Tories (and in England it almost always will be the Tories in these seats) want to win these seats back then they can campaign on this fairly narrow issue. If people are living in a Labour marginal with some "pretty" rural parts to this it may be an idea to write to the local Conservative association chairman telling them about this potential goldmine of votes. Association chairmen so rarely get this type of unsolicited mail from "constituents" you may find them very attentive.

Share this post


Link to post
Share on other sites

Gordon Brown's career and future premiership depends upon one thing--continued HPI. He believes the SIPP plan will keep house prices rising thereby assuring him of No. 10. If HPI falters significantly the long bony finger of blame will be pointing directly to number 11.

Gordon may have miscalculated though as many people no longer trust HPI for their pension plans. After all, house markets crash like stock markets and nothing is certain.

The ruination of local housing markets in Wales for local buyers could be cured by dissallowing tax breaks for 2nd home owners. Why has a Labour givernment given tax incentives to 2nd, 3rd ..... home owners by allowing them reduced council taxes? To perpetuate HPI.

HPC will spell the end of this government and Gordon's hopes of fame and fortune.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.