Darling, that was great for Oldham, say MPs

FIRST-time buyers struggling to get on to the property ladder in Oldham were offered a lifeline after Government axed stamp duty on homes under £250,000 paid for by taxing the rich.

In his Budget, Chancellor Alistair Darling said the stamp duty cut would be funded through the introduction of a new higher stamp duty band of 5 per cent on properties costing more than £1m from April next year.

The move which will run from midnight to the end of 2011 could benefit thousands of families all across the area currently struggling to own their own property. Analysis by a Government housing advisory body revealed only 29.1 per cent of families under the age of 40 across Oldham were able to afford a three-bedroom house.

Mr Darling said: “This means nine in 10 first-time buyers will pay no stamp duty at all.

“To ensure this measure does not burden the public finances this relief will be funded through an increase in the stamp duty for residential property over £1million.” The Chancellor also unveiled plans to extend the young person’s job guarantee to 2012 meaning no one in Oldham aged 18 to 24 would be out of work for more than six months.

Oldham East and Saddleworth MP Phil Woolas said: “This is a Budget made for Oldham — help for first-time buyers, jobs for young people, cash for universities and the most positive small business budget in my lifetime.”

Small business across Oldham will benefit with business rates being cut for one year from October funded largely by £2bn raised through taxes on bankers’ bonuses.

Oldham West and Royton MP Michael Meacher said: “It is good news for first-time buyers but we still need to be building more homes. Extending the young people’s jobs guarantee will benefit many in Oldham which can only be good because we cannot go back to sacrificing a generation as we saw in the 1992 recession.”

Ashton MP David Heyes said: “It is a budget for young people and families. I welcome the help for first-time buyers and it is particularly pleasing this will be paid for by a tax on the very wealthy.”