Where is all this money going to come from?

fiodyl

So far today I have read the government will be spending

• £300 million on loans for FTBs
• £600 million on a stamp duty break
• £200 million for councils to buy repossesions
• £400 million on new council housing
• £100 million on ISMI payments

Where is the money for all this spending going to come from? Did Gordon Brown win the Euromillions Lottery?

chewmylegoff

fiodyl wrote: »

So far today I have read the government will be spending

• £300 million on loans for FTBs
• £600 million on a stamp duty break
• £200 million for councils to buy repossesions
• £400 million on new council housing
• £100 million on ISMI payments

Where is the money for all this spending going to come from? Did Gordon Brown win the Euromillions Lottery?

£600m seems a lot on the stamp duty, someone must be doing some funny sums. Assuming that every house that sells that would've previously incurred stamp duty is at £175,000, then the stamp would have been £1,750.

that means £600m = 342,800 house sales miminum. i.e. more than 28,500 per month.

is the govt saying they reckon that this stamp duty concession will stimulate sales to the extent that there are at least 28,500 extra sales per month in the £150,000 - £175,000 bracket?

i think that's rather optimistic given that there are only around 35,000 mortgage approvals a month at the moment...

lostinrates

I don't think that people are ignoring you fiodyl......but rather that every one is ondering the same (including the treasury I imagine)

Generali

It totals £1,400,000,000 and will be added to Government borrowing so your children will pay for it. In effect it'll be an intergenerational mortgage - your kids pay tomorrow to maintain the value of your home today.

MissMoneypenny

fiodyl wrote: »

Where is the money for all this spending going to come from?

AD [STRIKE]couldn't[/STRIKE] wouldn't say.

baby_boomer

Where is all this money going to come from?

It's fairly small beer. Certainly nothing that's going to make any difference to the housing market.

Well under 1p on income tax.

And a pittance compared to the national debt.

The problem is that we're at that stage when the pittances are starting to add up .

The next government will have to take a firmer line with the public finances.

The "beauty" of the New Labour era for the average voter was that, for nearly a decade, people could bizarrely think that they stood for the nirvana of lower income taxes, higher public spending and a trebling of house prices :eek:

Why wouldn't people vote for that?

MissMoneypenny

Generali wrote: »

It totals £1,400,000,000 and will be added to Government borrowing so your children will pay for it.

Who will lend the government the money? Foreign investors are losing faith in our government.

Gorgeous_George

We should not look at how much it is costing but how much it really costs and how much it saves.

Thousands of repossession victims may avoid being forced into rental accommodation (private rental because the Tories sold the council houses to buy votes). Instead of getting their rent paid by the State, those saved from repossession may have some or all of their mortgage paid. It is better, in the long term, to avoid repossession.

I think that when the State pays someone's mortgage (in whole or in part), it should work like a student loan and should be repayable when times improve or when the house is sold. The same goes for prisoners - the cost of locking someone up should be a 'student loan'.



GG

Gorgeous_George

Generali wrote: »

It totals £1,400,000,000 and will be added to Government borrowing so your children will pay for it. In effect it'll be an intergenerational mortgage - your kids pay tomorrow to maintain the value of your home today.

That's ok then as they will inherit it one day

Some of the £1,400,000,000 is recoverable and therefore will not be a liability forever.

It could be funded by cuts elsewhere rather than by increasing National debt (troops out of Iraq, less waste in the NHS etc.)

£1,400,000,000 sounds a lot but it's about £23 per man, woman and child - or 50p per week each for one year.

GG

Generali

Gorgeous_George wrote: »

That's ok then as they will inherit it one day

Some of the £1,400,000,000 is recoverable and therefore will not be a liability forever.

It could be funded by cuts elsewhere rather than by increasing National debt (troops out of Iraq, less waste in the NHS etc.)

£1,400,000,000 sounds a lot but it's about £23 per man, woman and child - or 50p per week each for one year.

GG

I'd rather my kids had their £23 to put towards a house deposit or to help pay for their education rather than it being spent on a fruitless attempt to prop up house prices.

neverdespairgirl

Gorgeous_George wrote: »

£1,400,000,000 sounds a lot but it's about £23 per man, woman and child - or 50p per week each for one year.

£23 for every single person in the country sounds like a hell of a lot to me!