In advance of the Chancellor’s Spring Budget a month from today, UK Finance has published its Budget Submission.
The proposed measures by UK Finance include launching a campaign to invigorate public interest in capital markets, potentially reducing or eliminating the 0.5% share purchase stamp duty, and expediting digital transformation through the issuance of a digital gilt.
Moreover, reforms to MREL regulations were also suggested in the submission, with the aim of unlocking fresh investments and bolstering small and medium enterprise (SME) lending.
Another key proposal was the replacement of the Recovery Loan Scheme with a new Growth Loan Scheme, designed to back UK businesses in their endeavours to expand.
Additionally, UK Finance also called on the Government to embrace all recommendations of the Prompt Payment & Cash Flow Review and to publish a tax roadmap tailored for financial services.
Efforts to foster a robust housing market for both homeowners and renters form another cornerstone of the submission.
Recommendations in this sphere include amendments to the Lifetime ISA (LISA) scheme, making the first-time buyer stamp duty threshold of £425,000 a permanent fixture, and potentially reintroducing an equity loan scheme akin to Help to Buy, with a focus on regional variations in property values.
The proposal also advocates for the expansion and acceleration of the rollout of the First Homes scheme, alongside a comprehensive review of the consumer experience of Shared Ownership.
Furthermore, UK Finance’s submission also underscored the imperative of forging a pathway to net zero emissions by 2050, in alignment with a just transition.
This entails issuing sector-by-sector net zero investment roadmaps to delineate policy, spending, and regulatory interventions.
Additionally, the proposal calls for the establishment of a government advisory service to furnish homeowners with free, impartial retrofitting advice, aiming to provide certainty for firms engaged in retrofitting activities.
According to UK Finance, these recommendations, if incorporated into the upcoming Spring Budget, could potentially fuel economic growth, fortify the housing market, and advance the nation towards its net zero targets.
