News Index | Emergency Budget 2010

Emergency Budget 2010

This budget had to address the UK's structural deficit and there will undoubtedly be repercussions for the property market. The combination of raising the rate of CGT and VAT may limit growth and cost jobs in the sector.

A significant rise in CGT would threaten the supply of development land and deter new investors from entering the private rented sector. This risk will be tempered by the lower than expected increase.

We expect that the reduction in corporation tax rates over the next four years will stimulate the commercial occupier market and the wider economy by encouraging greater business investment.

Despite expected cuts to the public sector, regional property markets may also get some help from labour market initiatives to reduce the strat up costs of hiring employees. This may be especially helpful for smaller enterprises.