Tuesday, June 28, 2022

Boris Johnson announces new living plan including extension of subscription rights

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One focus of his speech was the expansion of the purchase right to enable tenants from housing cooperatives to enter the property ladder.

“This Government is on the side of the British public,” said the Prime Minister as he reiterated existing measures announced by the Chancellor last week.

Boris Johnson has unveiled a raft of new measures to ease the cost of living crisis as he intends to reset his leadership after a turbulent few weeks.

He warned that the UK could not simply “buy itself out” of the crisis as it risked “fanning the flames of further price hikes” amid rising inflation.

One focus of his speech was the expansion of the purchase right to enable tenants from housing cooperatives to enter the property ladder.

The new system will also open up the possibility for low-paid workers to use housing benefit to buy a home.

“It’s time to make better use of this huge wall of money – taxpayers’ money. It’s time to turn benefits into bricks,” he said.

Mr Johnson pledged to improve the housing market as he said it was unfair that “home ownership is overwhelmingly concentrated in the over 65s” and pledged “a comprehensive review of the mortgage market”.

“When (home) ownership remains out of reach for many hard-working people, it is neither right nor fair to pour ever-increasing sums of taxpayers’ money directly into the pockets of landlords,” he said.

“We’re going to try to change the welfare rules so that the 1.5 million working people who are on housing benefit – I stress the working people – and who want to buy their first home are given a new choice: spend their money like you’re benefiting from the now Rent or put it to use for a very first mortgage.

The purchase right will be “responsibly capped” and paid for from existing spending plans, Mr Johnson said.

He also announced plans to expand access to low-interest mortgages to “open the door to ownership.”

The government will work with lenders to recognize the creditworthiness of tenants who pay their rent on time, and the self-employed will also be taken into account.

“We want to make it easier to get a mortgage,” he said.

Other cost-of-living pledges included plans to “cut back” Whitehall, promised to “supercharge the city” and announced reforms “to cut costs in all areas of household spending” over the next few weeks.

Referring to rising fuel costs, Mr Johnson urged businesses to pass on savings such as the 5p fuel tax cut to consumers.

He also hinted that he wants to lower tariffs on food imports like olive oil and bananas.

Mr Johnson said it was time the government “stop spending and start cutting taxes and regulations”, calling the current tax burden a “deviation”.

He said taxes “need to be lowered” in a sign that households struggling could get more help.

Mr Johnson said Britain was “steering to the wind” as the country faces “global price pressures caused by the ongoing impact of Covid and the shock of Putin’s aggression in Ukraine”.

But the Prime Minister was optimistic that we can make it, noting that “our position is much better than during the last economic troubles”.

It comes after the Prime Minister’s official spokesman said the aim of the scheme is to prevent billions of pounds of taxpayer money – paid out as housing benefit – from going to private landlords.

The spokesman said the government will change the rules so people on Universal Credit who are saving money to deposit through a lifetime ISA or help buy ISAs don’t have to worry about their benefit payments being cut once their Savings reach a certain level.

Under the current system, these savings are not tax-free and result in the withdrawal of benefits.

The spokesman also said the government would review the mortgage market to see if more could be done to make lending more accessible.

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