A leading international organisation calls on the Chancellor to scrap Stamp Duty.

The Organisation for Economic Co-operation and Development (OECD), a group representing 38 leading economies, has urged Chancellor Rachel Reeves to abolish Stamp Duty Land Tax. This bold move, they argue, would free up the housing market by making it easier for people to move for work or downsize in retirement.

The OECD’s report highlighted that the current system is holding back the UK’s finances. They warn that sky-high debt, increasing interest payments, and a sluggish economy are all contributing to a ticking time bomb of borrowing costs.

The OECD didn’t stop at Stamp Duty. They also recommended a number of other significant changes, including:

• Unfreezing fuel duty: This could mean bad news for drivers who have enjoyed a break from rising fuel costs.
• Simplifying income tax: A simpler system sounds good in theory, but the devil will be in the detail!
• Limiting interest expense deductions: This change would affect how much companies can deduct from their taxes.
• Updating property valuations for Council Tax: Council Tax bands in England are still based on property values from 1991, so an update is long overdue!

These warnings come hot on the heels of a worrying forecast from the Office for Budget Responsibility, which predicts that the UK’s debt could balloon to a staggering 270% of GDP within 50 years, fuelled by rising healthcare and pension costs.

So what’s the Chancellor planning to do? Rachel Reeves is expected to address a £22 billion government overspend in her upcoming budget on October 30th. Tax hikes are on the table, but the OECD has also recommended reining in the costly pension “triple lock”. This system, which guarantees pensions rise by at least 2.5%, inflation, or wage growth, is putting a strain on public finances.

The OECD’s message is clear: “significant action is needed to stabilise public debt”. They believe a fairer, more efficient tax system is the key to turning things around.

With pressure mounting, all eyes will be on the Chancellor to see if she’ll take the OECD’s advice – including that eye-catching suggestion to scrap Stamp Duty!