The Treasury is heading for a £5.2bn stamp duty shortfall due to falling property prices, the Liberal Democrats have predicted.
New research by the party suggests that the difference from the 2008 Budget projection could be as great as £6.3bn, and even a best-case scenario would result in a £4bn slump.
Lib Dem Treasury spokesperson Matthew Oakeshott claimed that 'Gordon Brown let Britain's house party get out of control. Now Alistair Darling has been left with a £5bn Stamp Duty hangover.
'The Chancellor had hardly sat down on Budget Day before the housing market fell off a cliff in early April.
He added: 'Britain's mortgage famine… means most house sales are now forced and at knock-down prices. In this horrible market you only sell if you have to.
'Commercial property transactions have halved this year and prices are down 15%.'
