Rating (Property in Common Occupation) and Council Tax (Empty
Dwellings) Bill Consideration of Bill, not amended in the
Public Bill Committee Madam Deputy Speaker (Dame Rosie
Winterton) As indicated on the Order Paper, the Speaker has
certified that the Bill relates exclusively to England on matters
within devolved legislative competence. As the Bill has not been
amended, there is no change to that...Request free trial
Rating (Property in Common Occupation) and Council Tax (Empty
Dwellings) Bill
Consideration of Bill, not amended in the Public Bill Committee
-
Madam Deputy Speaker (Dame Rosie Winterton)
As indicated on the Order Paper, the Speaker has certified
that the Bill relates exclusively to England on matters
within devolved legislative competence. As the Bill has not
been amended, there is no change to that certification.
Under Standing Order No. 83M, a consent motion is required
for the Bill to proceed. It has been tabled and is
available in the Vote Office. Does the Minister intend to
move the consent motion?
-
The Parliamentary Under-Secretary of State for Housing,
Communities and Local Government (Rishi Sunak)
indicated assent.
The House forthwith resolved itself into the Legislative
Grand Committee (England) (Standing Order No. 83M).
[Dame in the Chair]
3.38 pm
-
The Second Deputy Chairman of Ways and Means (Dame Rosie
Winterton)
Order. Will Members leaving the Chamber do so quietly?
-
(Glasgow East)
(SNP)
I beg to move, That the Committee do sit in private.
-
The Second Deputy Chairman
I am afraid that that the hon. Gentleman cannot move that
in this Committee.
I remind Members that if there is a Division, only Members
representing constituencies in England may vote on the
consent motion.
Motion made and Question proposed,
That the Committee consents to the Rating (Property in
Common Occupation) and Council Tax (Empty Dwellings)
Bill.—(Rishi Sunak).
3.39 pm
-
(Perth and North
Perthshire) (SNP)
Thank you ever so much for calling me to speak, Dame Rosie.
Is it not good to be back in the environs of the English
Parliament, with all its tradition, with all its heritage
and with all its history? We are at last back in the
English Parliament, and is it not great that we are here
today? It does not come any more important than the Rating
(Property in Common Occupation) and Council Tax (Empty
Dwellings) Bill. These are critical English-only issues,
dealing with important hereditaments occupied or owned by
the same person—in England.
Although it is good to be back in the English Parliament,
it is nothing short of a crime that this English Parliament
has not met for weeks and months, meaning that English
Members have not had their opportunity to meet in this
English Parliament to discuss and debate critical
English-only measures, which were certified as English only
in these previous Bills.
-
(Glasgow East)
(SNP)
My hon. Friend is making a very powerful point. The
Government talk on a regular basis about how Parliament is
taking back control. Does he feel that that has been
represented by the fact that this is the first time that
the House has had the opportunity to take back control?
-
Let me say quite candidly to my hon. Friend that what we
are waiting for is the moment when my English colleagues
spring into action with this opportunity—perhaps this
one-off opportunity—to meet in their English Parliament and
to discuss the weighty issues of state that require that
English-only attention.
-
(East Antrim)
(DUP)
If the hon. Gentleman is so concerned about the absence of
any opportunities for English Members to speak on English
issues, why is he taking up all the time?
-
Let me say to the right hon. Gentleman: he may not take
this seriously, Conservative Members may not take this
seriously, but I understand the importance and the
significance of this English Parliament sitting in this
House of Commons and I will not deride that opportunity. I
stand here inviting English Members to get to their feet
and to explain passionately and eloquently why they need
this opportunity to debate these English-only Bills.
English Members have every right to be outraged that they
have not previously had these opportunities. That is why,
given that they have this opportunity today, I am fully
expecting them to spring to their feet to ensure that this
Parliament is properly respected. I will tell you
something, Dame Rosie: Scottish National party Members
fully respect the right of English Members to speak in
their Parliament. We expect to hear speeches full of
passion from hon. Members who have this fantastic
opportunity in front of them, because we know that the
English voice must be heard. It is a voice that demands its
right, and today all of England will be hearing from its
proud tribunes as they get to their feet in vast numbers to
articulately and compellingly put that English voice. I
remember why we have this Parliament, and I remember those
speeches when we changed Standing Orders so that we could
secure this Parliament. Can you remember, Dame Rosie, all
these perfidious Scottish Members of Parliament coming down
to this Parliament to make sure that that voice was going
to be overridden by Caledonian votes; the hordes coming
forth off that border to make sure that the outcomes were
to be influenced by Scots Members of Parliament. I remember
the eloquence with which that was put, why that had to be
rejected, why the English Parliament was necessary, and why
English votes for English laws had to be an enduring
feature of this House.
-
(Gainsborough)
(Con)
The hon. Gentleman protests too much. We all know that,
deep in his heart, he loves being here. He loves engaging
in the Union Parliament; he would be bored stiff in
Holyrood.
-
I wholeheartedly congratulate the hon. Gentleman on being
the first English Member of Parliament to speak in an
English-only debate in a Legislative Grand Committee of the
quasi-English Parliament who is not from the Scottish
National party and is not a member of the Government. Well
done to him; he is charting and pioneering a way for all
his colleagues now to follow. Speak in your English
Parliament and raise your English voice!
3.45 pm
-
(Brigg and Goole)
(Con)
I just want to be the second English Member to speak in
this important debate. I say gently to the hon. Gentleman
that maybe the English are not rising to their feet in
great numbers because we are so much more united and happy
with our lot in life, and we are happy with this particular
piece of legislation. If he wants to visit my constituency
to see how happy we are, he is welcome at any time.
-
I suspected that it might have been something like the
situation that the hon. Gentleman describes. Conservative
Members are just so united; of course there is no fissure
within the ranks of the Conservative party on the big
issues of the day. Here was I thinking that here were a
party and a Government in crisis, who cannot determine a
means of withdrawing from the European Union. But no, they
are not in crisis. They are all quiet because they are all
totally united on the big issues of the day. I am grateful
to the hon. Gentleman for putting me right on that point.
This great Parliament, in this green and pleasant land, is
free from Scottish intervention, even though every
contribution is made by a Scot.
-
(Ayr, Carrick and
Cumnock) (Con)
I intervene for fear that people in the Chamber today think
that the hon. Gentleman’s voice is for all of Scotland. It
is not for all of Scotland—it is for a small part—and
Scotland may not be proud of his behaviour in the Chamber
today.
-
We have now heard from three Government Members. In fact,
he is another Scottish Member to add to the growing list of
people who are now prepared to participate in the English
Parliament. I have a question for the hon. Gentleman, and I
will give him an opportunity to think about it. We think
that English votes for English laws is the most appalling
measure, which makes second-class Members of Parliament out
of him and out of us. It divides the House on geography and
nationality, and is one of the most invidious pieces of
legislation that has been passed in this place. I am not
prepared to accept this on behalf of my constituents. I
wonder whether he is. That is the big question today.
-
(North Dorset)
(Con)
The hon. Gentleman is right to say that the measure divides
the House on geography, but he is not right to say that it
divides the House on nationality, because Members
representing English constituencies who may not be
English—I happen to be a Welshman—can take part in these
debates and vote. The hon. Gentleman is right about
geography, but wrong about nationality.
-
What we have, therefore, is a House that is divided upon
nation. The last time I had a look, this was English votes
for English laws. No other Parliament in the world divides
its membership based on that type of geography. We are
exclusively alone when it comes to conducting our business
on such a basis. Lest the hon. Gentleman forgets, this is
the united Parliament of the United Kingdom of Great
Britain and Northern Ireland. To pursue a measure that
divides us, based on constituency geography, is not only
totally and utterly invidious, but ludicrous and
unworkable.
So we have this wonderful Parliament, but England said,
“No. Never again. We will make this Parliament ours. We
shall banish these Scots.” And it did. England created this
fine institution—this Legislative Grand Committee, the
voice of England. And what a transformation.
-
I just want to be the third English Member to speak on this
issue. The hon. Gentleman is not presenting a wholly
correct picture. Those of us who actually support the
principle of English laws did not want to ban anybody or
see Scottish Members thrown out of here. This situation is
a reaction to the fact that I, as an English Member of
Parliament, have no say on the matters that only affect
Scotland. For the purpose of fairness, given the devolution
settlement that we have, it is therefore perfectly
reasonable for only English Members to vote on certain
matters that only affect England. There is nothing
anti-Scottish about that, which is what the hon. Gentleman
seems be trying to say; nor is there any attempt to divide.
It is simply a response to the devolution settlement we
have.
-
I am grateful to the hon. Gentleman, because there was
quite a lot in what he said that I could go along with and
almost support. I understand English Members of Parliament
wanting that English voice. Of course they have
constituents to represent and demand that they have their
say in all this. There are a couple of elegant solutions
that might actually deliver that.
The first is Scottish independence. The second is a little
concept that seems to exist perfectly well in a number of
parliamentary institutions the length and breadth of Europe
and the rest of the world—it is called federalism, where
the hon. Gentleman has his parliament, we have our
parliament, and we all get together as equals to decide on
the stuff that we are going to reserve. What we do not do
is make the Parliament of the United Kingdom a de facto
English parliament and think that there will be no issue
with that. That is no solution. It is what we have just
now—this unsatisfactory arrangement that divides this
House, is unworkable, and is an embarrassment to this House
in how it operates.
Let us have a look at how it operates, this fine
institution—the English parliament; the voice of England.
-
The hon. Gentleman has rolled out for everyone his
grievance at being excluded from this discussion into which
he wants to have some input. Perhaps he could tell us what
it is in the Rating (Property in Common Occupation) and
Council Tax (Empty Dwellings) Bill that he finds so
offensive that he wants to say something about it, because
I have not heard anything about it yet.
-
I am just at the very beginning of my introductory remarks.
I want to come to this fine Bill—this fine English Bill. I
have lots and lots to say about the Rating (Property in
Common Occupation) and Council Tax (Empty Dwellings) Bill.
Believe, me, the hon. Gentleman will be more than satisfied
when I get on to the substance of this Bill, because there
is lots and lots that has to be properly—
-
The hon. Gentleman, along with most other people in this
House, will be more than satisfied when he sits down.
-
Let me say to you, Madam Deputy Speaker, that the papers I
have here are just a few of my brief speaking notes.
I am being very serious in all this. I know there can be a
little bit of banter about English votes for English
laws—how embarrassing, unworkable, stupid and ridiculous it
all is—but this is a serious Bill that requires attention.
The thing that surprises me more than anything else is the
lack of interest from my English colleagues. We will do
this job on their behalf. If they are not prepared to get
to their feet to speak to this fine Bill, it will be left
to Scottish National party Members—
-
(Wokingham) (Con)
rose—
-
But here is the genuine voice of England. I think the House
awaits his pronouncements with great interest.
-
I am grateful for the introduction from the hon. Gentleman.
His misguided mockery serves his cause ill and serves this
House ill. He well knows that we have had a proper
constitutional debate about how some symmetry can be put
into the asymmetric arrangements that we inherited so that
each part of the United Kingdom can make its own decisions
on its own measures, and this is the result. England now
has the right to veto a measure that the Union Parliament
wishes to impose on England if it does not meet with the
approval of England. It is the weakest form of devolution
of any of the four countries in our Union. The reason there
are not English Members queuing up to speak on this measure
is that we agree with it. We like this measure and we wish
it go through. If the hon. Gentleman is a true friend of
England, he will now sit down and let this Bill pass.
-
I think I am grateful to the right hon. Gentleman. I would
describe his intervention as half-hearted at best. His
heart was not really in it, I do not think. He is one of
the great defenders of the tradition of an English
parliament and English rights. Is he really satisfied with
these woeful arrangements for this House? I am all for
English democracy and making sure that English Members get
the opportunity to design and progress their own
legislation, as is required by their constituents, but to
describe what we are doing today—this embarrassing mess—as
a solution is below the right hon. Gentleman.
-
(Na h-Eileanan
an Iar) (SNP)
I have just heard the right hon. Member for Wokingham (John
Redwood) invoke a fantastic principle: that a member nation
of the United Kingdom has the right to veto a measure of
the Union Parliament. He said that English Members can veto
what the Union Parliament chooses. Can Scottish Members
have that right when it comes to Brexit? Can we veto the
imposition on a country where 62% of people voted to remain
in the European Union to be taken out of it?
-
indicated dissent.
-
The right hon. Gentleman shakes his head—one principle for
England, and another for Scotland.
-
My hon. Friend hits the nail right on the head. In this
wonderful institution—the quasi-English Parliament—it seems
to be all right for English Members to demand that they get
their way and that they determine their legislation. But I
remember the Scotland Bill 2015, as the right hon. Member
for Wokingham (John Redwood) will too. I remember something
like 97% of all Scottish Members of Parliament tabling
amendments to that Bill, only for them to be overwhelmingly
and comprehensively rejected because of the Government
majority. It seems to be all right for English Members to
get their own Parliament when it comes to these things, but
when we have our say on important reserved issues in this
House, it is completely and utterly ignored.
-
The hon. Gentleman must know that his colleague, the hon.
Member for Na h-Eileanan an Iar (Angus Brendan MacNeil),
has completely misconstrued the arrangements. No member
country of the Union has a veto over Union matters such as
withdrawal from the EU. Scotland not only has a complete
veto over Scottish legislation but is in sole possession of
Scottish legislation in a way that we English Members are
not for English legislation.
-
I will leave the right hon. Gentleman to take that up with
my good friend from Na h-Eileanan an Iar, who I have to say
I find much more convincing when it comes to some of the
great constitutional issues of the day. I am more than
persuaded by my hon. Friend’s eloquence.
-
So what is in the Bill? What is wrong with it?
-
I beg patience from the hon. Gentleman. There is so much to
say. I have done my study on the Bill, and I think it is
important. I have a list of 425 English towns where the
Bill will have an impact—I have everything from Aylesbury
all the way through to Witham and Wisbech, and I am going
to go through every single one of those towns to speak
about how some of the curtilage-related issues are being
dealt with. I do not want to leave out any part of England.
It is important that no part of England is left behind in
these debates, and if English Members are not prepared to
speak about their constituencies, it will be left to
Scottish National party Members to do it. We will not shirk
our responsibility to ensure that the English voice is
heard. That is our job today, and I am determined that we
will fulfil it.
-
Will the hon. Gentleman give way?
-
I will give way for the last time.
-
I am sorry that I am not the real voice of England; I do
not know what that makes me. The hon. Gentleman suggests
two solutions to this problem: one is Scottish
independence, which the people of Scotland have rejected,
and the other is federalism, which the people of England
clearly do not want, because all polling shows that there
is not majority support for an English Parliament. So what
is the SNP’s policy? Does it want to force independence
against people’s will, or does it want to force a system on
England against the will of the English? It would be nice
to know which undemocratic solution it wants.
-
The Second Deputy Chairman of Ways and Means (Dame Rosie
Winterton)
Order. The hon. Member for Perth and North Perthshire may
have been drawn down certain paths. I have been listening
carefully to what he has been saying, and I have given him
some leeway, but I remind him that the motion before the
Committee is that the Legislative Grand Committee (England)
consents to the Bill. I hope he will not be drawn down
other tracks and will confine his remarks to that
proposition.
-
For that, I am very grateful. I cannot believe that I have
been drawn down constitutional cul de sacs by the
outrageous contributions we have had from hon. Members. I
will now ensure that my remarks are confined to the Bill,
which is very important.
We have to find out why the Bill is important. It is
important because in 2017, in the autumn Budget statement,
the Government said that they would legislate to give
effect to two of the Chancellor’s commitments, one of which
was to retrospectively reinstate particular features of
business rates revaluation practice which apply before the
judgment of the Supreme Court in Woolway (VO) v. Mazars
UKSC 53. That is important, and it is one of the reasons
why we are doing this. There is another probably much more
important reason why we should consider the English-only
parts of this important Bill and make sure that we
understand and debate it properly during this Legislative
Grand Committee. The Bill will give local authorities in
England the discretion to charge a council tax premium of
up to 100% on long-term empty dwellings.
4.00 pm
That is why it is so important to consider this important Bill,
and we need to use the opportunity of this Legislative Grand
Committee to look at the motives behind the Bill’s design and at
the reason why there was a requirement on the Government to bring
it to this House. We want to make sure that the Bill is properly
considered—given all the significant amendments that were brought
forward on Report—and we have an opportunity in this Legislative
Grand Committee.
Let us have a look at some of the history and background of why
we want to hold this debate and why this Bill is so important.
For over 50 years, the practice of the Valuation Office Agency in
identifying the unit of assessment for business rates, known
herewith as the hereditament—if I have said that right—was based
on the leading decision of the Court of Appeal in Gilbert (VO) v.
S Hickinbottom & Sons Ltd 1956. Keep the year 1956 in mind.
When considering the question of a separate hereditament for
rating purposes, Denning LJ said, absent a definition in statute,
that the following general rule applied. I want to read the
ruling in full so that it is properly understood and so that we
know exactly the reasoning behind Lord Denning’s decision in
making the said judgment. I think the Committee is looking
forward with great anticipation to hear what Denning LJ had to
say. He said:
“First take the case where two or more properties are within the
same curtilage or contiguous to one another, and are in the same
occupation.”
Think about that:
“the same curtilage or contiguous to one another”.
Then Lord Denning said:
“In that case they are, as a general rule”—
There are sometimes exceptions to rules, but he said, “as a
general rule”. That is important when we are designing the
generality of a rule in legislation, because it is important to
understand that when there are general rules, there are often
exceptions. He said:
“In that case they are, as a general rule to be treated for
rating purposes as if they formed parts of a single
hereditament.”
When this ruling was required, he was clearly stating that the
general rule applying to the curtilage and to contiguous
dwellings was generally what we should pursue and follow. I think
his lordship was right: we must make sure we do this.
However, and this is important, Lord Denning then said:
“There are, however, exceptional cases where for some special
reason they may be treated as two or more hereditaments.”
He went on to offer some examples, and I am sure hon. Members are
absolutely glued to their seats waiting to hear what those
examples might be. He gave the example of the case in which
“one part is used for an entirely different purpose”.
Let us think about having a house and using different parts of it
for different purposes. That is an important distinction to make.
I know that in my house I have bedrooms, kitchens and sitting
rooms, so I use my house for different purposes. It is therefore
quite right that, when he made the ruling, Denning was quite
clear in saying that parts of a house are sometimes used for
different purposes. That is an important lesson from a very
important man.
-
Is the hon. Gentleman seeking to take a leaf out of the
book of the Irish nationalists in the 19th century and, by
filibustering and talking complete rubbish, bore the Union
to death?
-
I take great exception to what the hon. Gentleman has said.
This is an important Bill; he may not be interested in the
words of Denning LJ, but my colleagues and I are. We want
to make sure that this House is aware of the weighty views
of Denning LJ, whoever he may be.
So there is a general rule. It had been the practice of the
Valuation Office Agency that where units of property were
contiguous—that means “touching”, I believe—and in the same
occupation, they received one rates bill. I think the
Government have been really generous in offering examples
of how all this might work. That is why, when considering a
Bill such as this, it is very important that we take
everything into account.
The exceptions are important. The general rule, obviously,
is as well—because a general rule is a guiding principle on
how we approach these issues. But the exceptions are also
important because they could lead to precedents. This is
where we start to get into dangerous territory. In elegant
legislation, the general rule applies nearly universally.
When legislation has a number of exceptions, we start to
get into certain territory—I know how difficult it is for
the Clerks to design legislation with too many exceptions.
We have to be careful when designing legislation. When the
generalities of rules and what we want to achieve in
legislation tend to be universal in concept, it is
important to understand exceptions and all the other things
that may influence future legislation by becoming
precedent.
-
My hon. Friend is making a fantastic speech that
legislators across the world should pay attention to. Will
he expand on not the generalities but the exceptions? The
House could really do with fully understanding how
exceptions lead to further complications. Will he enlighten
me?
-
I always enjoy enlightening my hon. Friend, although it is
usually not necessary. I feel obliged to try to offer
further enlightenment on these particular issues. There are
other examples. I gave the example of my house, but my hon.
Friend is a crofter, and I am pretty certain that his is a
single dwelling on the isle of Barra—in fact, I know it
because I have seen his place on several occasions. I know
how he utilises his land and I am pretty certain that, when
it comes to him, the generality of the rule applies. His
dwelling is generally designed for the purpose of crofting
and habitation. I am pretty certain that his property is
not contiguous and that there is no such issue with his
land. I am looking at my hon. Friend and—
-
The Second Deputy Chairman of Ways and Means (Dame Rosie
Winterton)
Order. The hon. Gentleman must bear in mind that he should
face the Chair. Although he likes looking at his hon.
Friend, it is better to look at me.
-
It is always a joy to look at my hon. Friend, Dame Rosie,
but I will try to resist for the purposes of my brief
contribution to this Bill today.
-
Has the hon. Gentleman noticed that the longer he goes on,
the fewer of his hon. Friends he has to face when he turns
around? Maybe that should be a lesson to him: he is getting
a bit beyond what even his own hon. Friends will
tolerate—let alone the rest of the House.
-
I am glad that I have been able to detain the right hon.
Gentleman long enough to get his attention. I know he is
very much enjoying this short contribution to the debate.
Look at my hon. Friends, sitting here and making sure that
this important issue is discussed and debated. They think
that this is important, and that is the lesson that goes
forward today.
-
Does my hon. Friend think that if we encouraged our hon.
Friends with £1 billion, even more of them might come into
the Chamber and sit alongside the right hon. Member for
East Antrim (Sammy Wilson)?
-
Actually, I am looking forward to seeing the right hon.
Gentleman’s hon. Friends join him—it is always nice to see
our friends from Northern Ireland here. We may not be as
well endowed with largesse from the Government in order to
secure a majority, but we will muddle through on what we
secure from the Barnett formula.
-
The Second Deputy Chairman of Ways and Means (Dame Rosie
Winterton)
Order. The hon. Gentleman will return to the subject of the
debate.
-
I want to get back to the rule, Madam Deputy Speaker,
because it is the key issue in the Bill, one that must
consume and concern the House more than any other. The rule
was widely understood and accepted by ratepayers. It was
generally understood and I think everybody appreciated what
was happening. Representatives in the Valuation Office
Agency are responsible for assessing business rates.
However, the rule received negative judicial treatment in
the 2015 judgment of the Supreme Court in the Woolway v.
Mazars case. As a result, the VOA has had to change its
practice. The practice is now that separate units of
property in a shared building should be treated as separate
rating units and should therefore receive their own rules
irrespective of whether they are in the same occupation and
are contiguous.
That is what we are here today to consider properly. This
is an important issue. I will try to list some of the towns
and cities—hon. Members will represent some of
them—throughout the United Kingdom where it will apply and
where it is important. I will start with
Abingdon-on-Thames, where there will be dwelling houses
that are contiguous and which may or may not be part of the
general rule and may have exceptions. There is Accrington,
Acton, Alcester, Aldershot, Alnwick, Alston, Altrincham,
Ambleside, Amersham—I think we can see where this is
going—Andover, Arundel, Ashburton,
Ashby-de-la-Zouch—[Laughter.] Hon. Members are laughing at
my pronunciation. I challenge them to get to their feet and
say Auchtermuchty. There is Axminster, Aylesbury, Bakewell,
Bampton, Banbury—Madam Deputy Speaker, I could go on and go
on.
-
Since the hon. Gentleman is so concerned about those towns
and wants to highlight the problems facing their residents,
will he tell us whether he has visited any of them? Does he
even know where they are?
-
Looking through the list, I spent a lovely hour in
Berwick-upon-Tweed and I remember a lovely cup of tea in
Bexhill-on-Sea in one of its very fine restaurants, but I
am sure hon. Members do not want me to go through the whole
list and describe the very many hours I have spent.
I shall spare the House the 35 pages of towns, villages and
cities included in my list which are represented by English
Members who are not doing their job. I will now give them
the opportunity to get up and speak on behalf of their
constituents. I hazard a guess that they are probably
better at it than I am, as a Scottish National party Member
of Parliament. I think that my English colleagues are
probably just a little bit more qualified, experienced and
skilled to speak on behalf of their own constituencies than
I am, so I am perplexed as to why it has been left to me to
do this job. So I will now, having given them a little bit
of encouragement, give them to the opportunity to do it.
This is an absolute and utter farce, Madam Deputy Speaker.
Regardless of anything else, this speech has pointed out
just how ridiculous this practice is. I am just about the
only Member of Parliament who has spoken in Legislative
Grand Committees. I could speak for another hour if
required, but I know Labour Members are keen to move on to
the next business and I will accommodate that. We should be
profoundly ashamed of the way we operate English votes for
English laws procedure. It has become an embarrassment to
this House and makes this place look at its most
ridiculous: bells ringing, maces going up and down, and
nothing ever actually happening. It is time that we brought
this farce to an end. I appeal to hon. Members from
England. This has not worked. We have tried it. We have
seen what it is like and nothing ever happens. Join us now
to ensure that we rid the House of this embarrassment and
go back to a united House with one class of MP where we can
all have an equal say. Join us and let us end this farce.
Question put and agreed to.
Resolved,
That the Committee consents to the Rating (Property in
Common Occupation) and Council Tax (Empty Dwellings) Bill.
The occupant of the Chair left the Chair to report the
decision of the Committee (Standing Order No. 83M(6)).
The Deputy Speaker resumed the Chair; decision reported.
Third Reading
4.14 pm
-
The Parliamentary Under-Secretary of State for Housing,
Communities and Local Government (Rishi Sunak)
I beg to move, That the Bill be now read the Third time.
This Bill, above all, promotes fairness; it promotes
fairness for hard-working business rate payers hit by a tax
hike that they could not have anticipated—the so-called
staircase tax—and fairness for those who struggle to find
somewhere to live while properties lie empty for years.
That is why we moved quickly to introduce the Bill and
ensure that ratepayers, in particular, receive the urgent
help that it will provide. I thank hon. Members on both
sides of the House for their contributions and support in
helping us to achieve this aim.
-
(Westmorland and Lonsdale)
(LD)
The Minister is making important points and the Bill does
some important things. However, it could do something
important that it does not—it does not allow local
authorities, such as his and mine, in very rural areas to
vary council tax on second homes. He will be aware that in
the Yorkshire dales and the Lake district, vast percentages
of communities are empty most of the year round because
homes are not lived in. That undermines schools, public
transport and the sustainability of such communities. Will
the Government listen to local authorities and local
communities and allow council tax to be raised to tackle
the problem of excessive second-home ownership?
-
I thank the hon. Gentleman, my constituency neighbour, for
his intervention. He is right to point out the issue of
second homes in rural areas, which he and I have local
familiarity with. I gently disagree when he says that
nothing is being done. As he will be aware, the Government
introduced a stamp duty surcharge for second homes. Much of
the funds raised from that have gone to schemes, perhaps in
his constituency and certainly in mine, in areas with high
second-home ownership—for example, in Hudswell in
Richmondshire, where community land trusts have been funded
to create affordable housing for local occupancy. Beyond
that, local plans, which no doubt will be discussed in the
forthcoming debate, also allow local communities to have
control over who is living in new build properties.
Work is being done, and all that followed the work done by
the coalition Government to remove the automatic discount
for second homes. The hon. Gentleman will be aware that
that was in place for many years. The coalition Government
removed the necessity for the discount to apply, and now
the vast majority of second homes are not eligible for a
council tax discount, but he is right to point out the
issue. The Department is looking more broadly at the
loophole with regard to business rates applying to second
homes and them then qualifying for an exemption through
small business rates relief. This has been raised by hon.
Members, including my hon. Friend the Member for St Austell
and Newquay (Steve Double) and others from Cornwall, so the
hon. Member for Westmorland and Lonsdale (Tim Farron) can
rest assured that I am keeping an eye on this issue.
I return to the Bill, which deals with empty homes. I thank
our partners in the rating sector for their invaluable help
with the draft provisions, together with the very detailed
and technical work that was done by officials, to whom I
pay thanks. This has helped us to bring effective
legislation to the House that navigates the intricacies of
ratings law.
I also pay tribute to the work of the Housing, Communities
and Local Government Committee. Not only did its comments
on the definition of a void find their way to the language
in the final Bill, but I note the points raised on Second
Reading by the Committee Chair, the hon. Member for
Sheffield South East (Mr Betts). He is not in his place,
but I thank him and assure him that I look forward to
working with him in future to ensure that Bills from my
Department and in my brief go through the adequate
legislative scrutiny process, which we were fortunate to
enjoy doing with the Committee. Lastly, I thank the hon.
Member for Oldham West and Royton (Jim McMahon) for his
input and constructive attitude in the Bill Committee. I
very much look forward to working with him on future local
government measures.
In conclusion, this Bill delivers on our commitment to
fairness and supports those in our country who want to
build a better life. It is a Bill for those looking for a
place to call home. It is a Bill for small businesses. It
is a Bill that I hope we can all welcome, and I commend it
to the House.
4.19 pm
-
(Oldham West and Royton)
(Lab/Co-op)
I thank the Minister for the constructive and positive way
he has approached the Bill, from the early conversations
about the technicalities to his contributions in Committee,
and I repeat his thanks to the Committees that have worked
in the background on this. It is clear that a lot of work
has been done to engage and iron out the wrinkles in the
Bill. I hope this reinforces the offer we made some time
ago that, where measures are not controversial and have the
support of the sector, we will work constructively to take
them through Parliament. I hope this will be the first of a
number that local government wants to see come forward.
I do not know whether it is in order to refer to a previous
stage, Madam Deputy Speaker, but I thought the hon. Member
for Perth and North Perthshire (Pete Wishart), who is not
in his place, took something of a liberty in the
Legislative Grand Committee in trying to hijack a debate
that affected English parliamentarians and English
constituencies for what is an age-old debate about English
votes for English laws. It almost belittles the detailed
work done in many Committee sittings, where the hard work
of making law has been happening but in a more constructive
and mature way. I would not want us to lose sight of that.
People watching on television—if anyone was watching
it—might have been left with the inaccurate impression that
Parliament was not doing its job and that this is a
superficial way to pass laws, which is not the case at all.
Turning to the Bill, we support the measures relating to
the staircase tax and the Supreme Court ruling. We
recognise that it was a quirk of the system when it went to
court and that it was not the original intention of the
Bill, but there remains concern about the financial impact
on local authorities. In private meetings and in Committee,
we requested a breakdown of the implications for each local
authority in the country, but we have not to date had that
information and so have not been able to assess the impact
of this financial change on each local authority.
The Government will say that that is because the Supreme
Court ruling meant that some local authorities were, for a
short period, financially better off than had the ruling
not been given, but many councils set their budgets based
on that financial information, so some will face a net loss
when, because of this change, money they were expecting
from business rates does not come in. For some, the loss
might be very minor, but for others it could be
significant, depending on the make-up of properties within
their local authority area. It would therefore have been
reassuring to see that list here today.
The agreement between central and local government that,
where central Government makes a change to the financial
settlement and rules and regulations that has a net effect
on local government budgets, councils ought to be
compensated. Local Government and the Local Government
Association—I declare an interest as the vice-president of
the LGA—are concerned about what it means when the
Government make changes that can materially affect the
financial base of local authorities but then do not provide
financial compensation. Notwithstanding that, we recognise
that the Government have heard the calls from business and
ratepayers and have taken action. That should be welcomed.
Empty properties are a big issue. There are around 200,000
empty properties in this country at a time of a housing
crisis. We know that 120,000 children in this country are
without a permanent home and living in temporary
accommodation. So the housing crisis is very real. Part of
the problem with the Bill is that it addresses some types
of empty property but not others. About 20% of properties
in parts of London are empty. They are owned by wealthy
individuals and institutions that will not be put off by a
100% additional council tax payment requirement, because
that is pennies in the scheme of the wealth they hold. It
might affect small landlords and people renovating
properties, but it will not necessarily affect the part of
the UK that arguably has the biggest housing crisis, and
that of course is London. If the Government come forward
with new proposals to address the problem of foreign
individuals owning properties they have no intention of
ever living in or allowing others to live in, the shadow
housing team would be open to a discussion on that.
I am aware that there is a housing debate to follow and
that a great many Members have applied to speak in it. I
repeat my thanks to the Government for being constructive
and for engaging in the process at an early stage. I also
repeat the offer of what we know local authorities want:
far more cross-party working on matters that affect local
government as a whole.
4.25 pm
-
(Harrow East) (Con)
I shall make just four brief points.
Along with the hon. Member for Sheffield South East (Mr
Betts), the Chair of the Housing, Communities and Local
Government Committee, I examined the Bill in draft. However,
the staircase tax was drawn to my attention by my constituent
Anthony Broza, who was faced with a swingeing rates demand
for more than £8,500, to be paid in one go, which he had no
way of paying. I hope that, as the Bill proceeds, the
Government will find a way to return the money that has been
taken from small businesses as swiftly as possible, because
this has had a direct, demonstrable impact on the cash flow
of 30,000 businesses across the United Kingdom.
May I issue a gentle reminder to the Minister? Our Select
Committee wanted to subject the draft Bill to pre-legislative
scrutiny, but because the Government published it long before
we were allowed to do that, we were unable to contribute as
effectively as we would have liked. I strongly suggest that
in future, if the Government wish Select Committees to
undertake pre-legislative scrutiny, they should allow them to
do that work in advance.
As was mentioned by the hon. Member for Oldham West and
Royton (Jim McMahon), local authorities will lose money as a
direct result of this—necessary—correction of the law. I have
yet to see a quantification of that: I have yet to find out
how many local authorities will lose, and how much they will
lose. However, given the Government’s clear commitment in the
Budget to compensate local government for any losses that
would result, I think that they owe a debt of honour to those
authorities.
My final point, which I hope will be discussed in the other
place, relates to the concerns raised by a number of small
businesses about the double-jeopardy risk involved in
requesting a review. Requesting a review of rateable value
may cause it to increase dramatically, and there is a risk
that by asking for a review, small businesses could lose out
as a result of what is otherwise a very good measure. I ask
the Government to consider how we can ensure that they will
not have to pay large sums of money as a result of new
valuations. However, I—along with, I am sure, all other
Members—support the Bill. It is a very well-meaning measure,
and I trust that it will become law as quickly as possible.
Question put and agreed to.
Bill accordingly read the Third time, and passed.
|