Tourism

Debate between Earl of Glasgow and Baroness Bottomley of Nettlestone

Wednesday 24th April 2013 Grand Committee

[The Earl of Glasgow]

There are no votes in making concessions to people living in grand houses; rather the opposite, we are targeted as people to be milked. Contrary to popular belief, the majority of those living in grand houses are not particularly rich—because they are living in grand houses. HHA members collectively spend £139 million a year to maintain their historic buildings and grounds, and these sums are barely enough to contain the dry rot and stop the wet coming in.

The late Nicholas Ridley, a Minister in the Thatcher Government, grew impatient with historic house owners bellyaching about the cost of maintaining their houses. “If they can’t afford to keep them, why don’t they sell them to people who can?” was the argument.

[Baroness Bottomley of Nettlestone]

He said the nouveaux riches rather than the anciens pauvres. I was his junior Minister.

[The Earl of Glasgow]

Oh, did he? I did not know that. I think his sympathy was the same. On the surface, this seems perfectly rational but it ignores the reasons why so many of us carry on, year after year, struggling to hold on to the buildings we have probably inherited and in most cases learnt to love, while continuing to lose money every year. To own such a place is a privilege as well as a burden. Perhaps we feel we owe the struggle to ancestors who were struggling before us.

I think I am right in saying that no stately home in Britain that is open to the public actually makes a trading profit. The ones that are surviving do so only because the owner has other sources of income or can resort to selling a Titian or a Van Dyck every other year to fill the gap. Nearly all the historic buildings in private ownership are now open to the public but the income derived from them only helps defray the cost of keeping the house wind and watertight. On top of that, we must pay VAT on all structural improvements we make to the building, while our rich neighbour can build himself a brand new, comfortable, warm house completely VAT-free.

Now we hear that the Government intend to cap sideways loss relief, which was one of the few forms of tax relief to the beleaguered owners of historic houses. Then, as my noble friend Lord Lee has already said, we have the prospect of a mansion tax some time in the future. In this time of recession, many owners of historic houses are holding on to their homes only by a thread. Already some are having to face reality, forced on them by their banks.