Phil’s chance to shine

WITH just nine days to go before the final pre- Brexit Budget, Chancellor Philip Hammond can learn a vitally important lesson from the dire consequences of his predecessor’s stamp duty reforms.

In 2014, George Osborne sought to encourage home ownership by easing the burden of this tax on buyers of cheaper properties. So far, so good.

But where he went disastrously wrong was in trying to make up the revenue shortfall by dramatically increasing stamp duty on the most expensive homes.

Worse, two years later he imposed a punitive levy on second homes – charging buyers at the high end of the market 15 per cent on top of the asking price.

The results have been as depressing as they were predictable. Far from bringing in extra cash, these stamp duty increases have sent revenues plummeting, with yesterday’s figures showing receipts down £542million so far this year.

The moral for Mr Hammond couldn’t be clearer: increase tax rates beyond a certain point and he’ll have less money, not more, to spend on public services.

But it’s not all bad news for the Chancellor. Hugely encouraging borrowing figures show the deficit down to a 16-year low. This gives him scope not only to meet his commitments to the NHS but to throw a lifeline to dying high streets by easing business rates. In nine days’ time, Mr Hammond has the chance to throw off his reputation as dreary Spreadsheet Phil – and deliver an inspirational budget to invigorate business, reward hard work and make Britain truly fit for Brexit. He must seize it.