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20 November 2012 | Adam Leach
The mayor of London has urged the chancellor to “consider” scrapping stamp duty for new home construction in order to increase activity in the construction supply chain.
In a speech at yesterday’s CBI Annual Conference, Boris Johnson outlined his views on what is required to stimulate growth in London and the UK. In particular, he called for an increase in construction activity in London, highlighting the strong effect it would have on SMEs through the supply chain.
Citing that one in four SMEs based in London is involved within the construction supply chain, Johnson sent a pointed message to George Osborne - who will give his autumn statement on 5 December - asking for tax relief to stimulate building activity.
“I think it would be a good idea for the chancellor to cut stamp duty on new build homes in order to promote supply,” he said.
The mayor’s speech was on the theme of extending the legacy of the London 2012 Olympics. He held up the construction achievements of the Games, such as building the Olympic stadium on time and on budget and the economic benefits it provided, as showing it is the best way to pursue growth. He also told the audience it should be a key objective of politicians to ensure “security of supply” of energy for businesses.
Earlier in the conference, Prime Minister David Cameron also highlighted the need to support SMEs in their quest for growth. He said: “There are huge opportunities around the world. I think big businesses are taking those but we need to spread that right down the chain to our SMEs.”