Tories propose help to buy generation and £13bn tax cuts in new manifesto

Prime Minister Rishi Sunak will revive his campaign with a Conservative manifesto focusing on significant tax cuts and support for first-time buyers.

Sunak insists it is “morally right” to reward hard work, positioning himself as the successor to Margaret Thatcher and Nigel Lawson.

Key points of the Conservative Manifesto

£13 billion in tax cuts:

The manifesto outlines plans for more than £13 billion in tax cuts, aimed at income earners, parents and pensioners. These cuts will be financed by overhauling the social security system and cracking down on tax avoidance. One of these measures is a proposed reduction of 2 cents in national insurance.

Help buying Revival:

Sunak will introduce a new £1 billion scheme to help first-time buyers, allowing them to buy homes with as little as a 5% deposit. This scheme, inspired by the previous Help to Buy initiative, will be available for properties under £400,000. The previous plan had a limit of £250,000 outside London and £450,000 in the capital.

Abolition of stamp duty:

The Tories plan to permanently abolish stamp duty for first-time buyers on properties up to £425,000. Sunak claims the move will help build a ‘ownership society’, giving more people the security and pride of their own home.

Sunak’s view

Sunak articulates a vision in which working individuals can keep a greater share of their earnings, contrasting this with Labour’s approach. He says: “Keir Starmer has a very different point of view. He says he’s a socialist, and we know what socialists always do: take more of your money.”

Sunak highlights the Conservative Party’s commitment to sound money management, in line with the legacies of Thatcher and Lawson. He emphasizes the importance of rewarding hard work by letting people keep more of their own money and reducing dependence on social services by lowering taxes.

Responding to housing issues

In a BBC interview, Sunak acknowledged the increasing difficulty of home ownership in recent years. He pledged not only to build houses in suitable locations but also to support youth in securing well-paying jobs to save for deposits.

The new Help to Buy scheme offers a 20% government loan for new-build homes, allowing first-time buyers to secure homes with a 5% deposit. This scheme has a term of three years, with no interest having to be paid on the part of the loan with state equity during the first five years. Developers will contribute a quarter of the cost of equity loans.

Competing proposals from Labour

Labor has also proposed measures to help first-time buyers, including making the current mortgage guarantee scheme permanent. The scheme, which expires in June next year, sees the government act as a guarantor for part of a home loan, encouraging lenders to offer low deposit deals. Labor claims their plan will help more than 80,000 young people into the housing market over the next five years.