Philip Hammond has maintained that his flagship reduction of stamp duty will assist first-time buyers on the housing ladder.
The Chancellor has dismissed criticism of the policy, outlined in yesterday’s Budget, in the wake of the Office for Budget Responsibility’s (OBS) assessment.
The body released a poor set of economic forecasts, which downgraded growth predictions for the next five years, while suggesting the abolition of stamp duty would push up prices.
However Hammond said the OBS hadn’t taken all factors into account, adding that the UK must prove the body’s growth predictions wrong.
The stamp duty policy was part of a package of policies which will pump a further £25 billion into various aspects of the UK economy, including housing, the NHS, and infrastructure.