The PBR's welcome from the mortgage industry has been muted - but Citizen's Advice has welcomed the plan.
Mortgage brokers, lenders and a debt charity have all given their verdicts on the chancellor's new economic plan unveiled to MPs yesterday.
In his pre-Budget report (PBR) statement chancellor Alistair Darling outlined a £20 billion economic stimulus package, designed to ward off the worst of the coming recession.
As a result, VAT is to be cut, income tax rebates for basic rate taxpayers are to be increased and future tax rises on vehicle excise duty and corporation tax are to be suspended. The PBR also outlines boosts to the debt advice sector and promises increased infrastructure spending to keep more people in work.
However, Ray Boulger, senior technical manager at mortgage broker John Charcol, said that the PBR contained "little really positive news" for the mortgage market - and added that the government's failure to reduce or abolish stamp duty land tax was a "big disappointment". He added: "A complete temporary suspension would have provided a very positive stimulus to the housing market, but as there is nothing in the PBR to yet help increase the supply of funds to lenders."
For their part, the Council of Mortgage Lenders (CML) was largely positive about the PBR, although it termed the plans "modest" and highlighted what it sees as a certain inequality in lenders' treatment from ministers. Michael Coogan, the CML's chief executive, commented: "It is vital to recognise that not all lenders are the same, and not all have received support from the government's interventions in what remains a very difficult financial and economic environment."
Citizens Advice, the debt charity whose bureaux were given £10 million of extra funding by the PBR, was welcoming of the plans. With this money Citizens Advice Bureaux in England and Wales should be able to help up to 335,000 more people a year, an increase of 17 percent," Teresa Perchard, director of policy for the charity, said.
"It will make it possible for at least 322 bureaux - three-quarters of our bureau network - to open at least five hours extra a week to provide advice to clients both face-to-face and over the phone."
