Wednesday, May 26, 2010

The Daley (Half Dozen): Wednesday

1. Iain Martin argues that it is the constitution which will cause trouble for David Cameron.
2. Paul Linford wants more women ... leadership candidates.
3. Fraser Nelson warns Michael Gove to guard against vested interests.
4. Douglas Carswell wants you to suggest what he should ask the PM at PMQs next week.
5. Former Tory MP Jerry Hayes has started blogging.
6. Lord Norton on an on form Earl Ferrers.


javelin said...

Iain. I've been posting support on John Redwoods site for a long time. How ever I disagree with his proposal not to pay CGT on second homes. I see John has a lot of support on his site. However I was the first person to post and disagree with him. He has not published my comment !!

If john can't stand up to criticism he should get out the heat of the kitchen. Anybody reading this needs to know he is censoring counter arguments on his website.

In his honour Id like to nick name him the Minister for Second Homes.

I have to fundemnentally disagree with you regarding CGT on homes. Low CGT represents a gross distortion of the housing market. I have a observation that the seeds of destruction are sewn in victory. Well this is not much of a victory – but we are begining to climb out of recession and it is very tempting to help buy to let landlords and home owners who are your natural voters.

But it is a very short term view. Low CGT on homes means keeping house prices artifically high. It means people spending large amounts of incomes on mortgages they cannot afford. It raises highly geared risks in the economy. It means less money in the generally economy and more money tied into mortgages. It means both partners working harder and more broken Britain.

I also think other controllable policies, such as interest only mortgages, subsidised mortgages, low interest rates on mortgages are keeping the housing market artifically high. Eventually young people will not be able to afford houses and houses prices will fall on a downward trending threatening the whole economy.

The support from thousands of buy to let landlords you have had is only because they are interested in making money and not interested in the future of this country or homes for young people. Your persistence at supporting them really isn’t helping the UK in the long run.

Anonymous said...

Iain, the level of Labour bias on the Beeb has now reached epidemic proportions. The Gove school story has been twisted beyond belief. It has reached a point where I think the Beeb is terminal. However, there seems a reluctance to take it on, why?

javelin said...

Just come out of a "prediction meeting". My argument was that Osborne would not make the 60bn cuts he needed to to prevent interest rates rising on debt. He would sail close to the wind and keep the credit rating agencies on board.

I just don't think the coalition Government has the political will OR the logistical capacity to reduce the debts fast enough.

I think a faster rise in rates to 3% is now seen as inevitable. Mortage and savings rates are already around 3%. I think stability and growth will come back into the Market and the risk of inflation.

I think the LibDems will focus taxes on high house prices. I can see local taxes increasing based on home value, CGT rising, bank taxes rising. Which I think will be a good thing to bring house prices down before the next growth phase.

wild said...

Deleting critical posts (indeed general hostility to freedom of speech) is the sort of behaviour you expect from Leftist Blogs. If true (and I have no reason to doubt Javelin's claim) John Redwood should be ashamed of himself.