Stroud: Capital gains tax must be adapted, says Labour MP

Dr. Simon Opher, the Member of Parliament, engaged in a conversation with a voter regarding her worries about housing.

A Labour MP has stated that the capital gains tax should be revised to prevent individuals from treating housing as an investment instead of a place to live.

Dr. Simon Opher, the newly elected MP for Stroud, had a conversation with local resident Catherine Morgan, who is involved in the BBC's Your Voice Your Vote initiative.

Ms. Morgan, a small business owner and mother of two, is on the hunt for a new home but is facing challenges in finding one. She's advocating for the construction of more affordable homes and social housing options.

Labour is suggesting that Stroud should add 715 new homes each year. However, the Green Party leaders at the district council have claimed that these plans are not feasible.

Between April 2023 and March 2024, a total of 446 new houses were constructed in Stroud, of which 156 were designated as "affordable."

As of September 2024, there are 3,164 families listed on the social housing register.

"We're currently missing that sense of security," Ms. Morgan stated, noting that "the outlook for achieving home ownership seems quite grim."

Ms. Morgan operates a small company that specializes in producing treats designed for board games.

The new administration aims to construct 1.5 million houses before the upcoming election. If they achieve this goal, it will mark the largest housing development initiative in contemporary history.

The Labour Party has unveiled new housing goals for local councils throughout the nation. For Stroud, the target is to build 715 new homes each year.

Opher opposes the local environmental community's resistance to the project, stating that "we really need to construct more homes."

"It appears that we have reached a point where there is a shortage of available housing in the area," he stated.

A challenge with housing developers is that they tend to focus on building large five-bedroom homes, showing less interest in creating smaller properties. However, what we really need right now, especially in the Stroud area, are these smaller homes.

Ms. Morgan asked the Member of Parliament about strategies to alter the housing market in order to prevent companies from purchasing residential properties.

"We should update the capital gains tax because, right now, it is significantly lower than income tax," he stated.

I’m unsure about the specifics of the budget, but I've heard talks about possible hikes in capital gains tax, especially regarding second homes.

The Labour Member of Parliament acknowledged that difficult decisions were necessary during the initial 100 days of the new administration because of the condition of the government’s finances.

Labour MPs have decided to eliminate winter fuel payments for millions of elderly citizens, sparking strong criticism from the public and discord within their own party.

"The Labour government is focused on encouraging growth, which requires making some difficult decisions. It hasn't been easy," he stated.

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