Hywel Williams debates involving HM Treasury during the 2019-2024 Parliament

Downing Street Garden Event

Hywel Williams Excerpts
Tuesday 11th January 2022

(2 years, 10 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Michael Ellis Portrait Michael Ellis
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It is an entirely hypothetical position. The Prime Minister is going nowhere. The right hon. Gentleman seeks to draw me into making a supposition about the result of any inquiry, but the Prime Minister retains the confidence of the people of this country, and he did so two years ago with the biggest majority in decades.

Hywel Williams Portrait Hywel Williams (Arfon) (PC)
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A survey by the Alzheimer’s Society shows that the health of 82% of people affected by dementia deteriorated during the first lockdown. Reduced social contact was a significant contributory factor. Does the Minister therefore agree that it would be unforgivable for the Prime Minister to prevaricate, obfuscate, seek to evade or distract, joke, take refuge in an industrial refrigerator or perhaps just lie about parties at No. 10?

Michael Ellis Portrait Michael Ellis
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We will await the result of the investigation.

0.7% Official Development Assistance Target

Hywel Williams Excerpts
Tuesday 8th June 2021

(3 years, 5 months ago)

Commons Chamber
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Hywel Williams Portrait Hywel Williams (Arfon) (PC)
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I am grateful to the right hon. Member for Sutton Coldfield (Mr Mitchell) for securing the debate. I admire the authentic passion that he brings to this subject.

I oppose these unjustified and unwise cuts to aid. The Government are said to be motivated by a wish not only to balance the books and manage public spending, but to court popularity in the red wall seats. I can tell the Minister that opinion in Wales is very much against the Government on this and it will do them no good. When we get that long-overdue by-election in the north-east of Wales, they will see that for themselves.

From a Welsh perspective, I note that smaller European countries—Denmark, Sweden, Luxembourg, Norway—have met their 0.7% of GDP targets. Indeed, Sweden has provided not 0.7% but 1.14% of its GDP in aid. Sweden and the others can do this, and they achieve the 0.7% and more. Unfortunately, the UK can but chooses not to do so.

Leading figures in Welsh public life and local constituents alike have expressed their dismay, describing this cut as a double blow to the world’s poorest communities at the time of a pandemic. The Welsh Government themselves, in their policy documents on international matters—their agenda—say that they are

“committed to promoting social justice, fairness and equality”.

What value have those fair words from the Welsh Labour Government when we are tied to and overruled by this mean-spirited, short-sighted policy from the Westminster Government?

The United Nations Population Fund is to be cut by 85%, UNICEF’s core funding to support children by 60%, and total funding by £4.5 billion. Those figures would be a disgrace to any country, but given this Government’s pretensions to be a leading global power and an example to others, they are not only a disgrace but a major self-inflicted blow to the UK’s international standing.

I referred a moment ago to the United Nations Population Fund. What does that cut mean in real terms? Funding is to reduce from £154 million to £23 million, which will lead, it says, to up to 7 million unintended pregnancies, 2 million unsafe abortions and 23,000 maternal deaths. UNICEF says that it is “too soon” to judge effects, but

“children…in some of the world’s worst crises and conflicts will suffer”

as a consequence—as a deliberate effect, unfortunately—of this policy. Lastly, Save the Children says:

“These cuts will trim UK borrowing by a fraction, but devastate lives across many of the world’s poorest countries.”

Because of all that, I join others in appealing to the Minister and the Government to withdraw these cuts.

LGBT Conversion Therapy

Hywel Williams Excerpts
Monday 8th March 2021

(3 years, 8 months ago)

Westminster Hall
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Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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In my constituency of Arfon, 243 people signed this important petition. I add my support and that of Plaid Cymru to the calls for a legislative ban on conversion therapy across the UK and on minors being taken out of the UK for conversion therapy abroad. This must include a ban on the advertising and promotion of such practices, and proper support for victims.

In 2018, the Conservative Government acknowledged the issue and committed to ending conversion therapy in their LGBT action plan. Nearly 1,000 days later, this practice is still legal. Cranogwen, who was an important 19th-century figure in the history of LGBTQ+ people in Wales and a literary figure of national importance, said:

“It is a pretence in everybody…to try to be what they are not; and it is a loss for anybody not to be what they are.”

Despite progress since then, her words still ring true. In fact, Stonewall Cymru found that a third of LGBTQ+ employees in Wales hid or disguised their identity at work.

Banning conversion therapy is an important step towards creating a truly equal society, as is the Plaid Cymru policy of ensuring that trans people have legal recognition of their gender through a streamlined and de-medicalised process based on self-declaration.

Lastly, the action plan says that ending conversion therapy will require a UK-wide approach. What discussions has the Minister had with the Welsh Government about this issue and have the Welsh Government requested legislative competence to introduce a comprehensive ban in Wales?

Covid-19: Ethnic Minority Disparities

Hywel Williams Excerpts
Monday 1st March 2021

(3 years, 9 months ago)

Commons Chamber
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Kemi Badenoch Portrait Kemi Badenoch
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My hon. Friend is absolutely right. We in this House must recognise that we have positions of responsibility. I think I have said before at this Dispatch Box that while it might be fun to get lots of retweets for promoting messages targeting the confidence that people have in the vaccine, it is definitely not something that we should see elected parliamentarians doing. We have seen Members in this House make comments either disparaging the vaccine or claiming that the Government are using ethnic minorities as cannon fodder. It is really irresponsible, and it does directly contribute to vaccine hesitancy. If we are going to get out of this pandemic and if we are going to continue down the road map and unlock our economy, we need everyone to be responsible and to stick to the public health messaging that is approved by the NHS.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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Thirty thousand black, Asian and minority ethnic people live across the northern and western counties of Wales. Dispersed rural communities such as these are harder for health authorities to reach and may not have the same density of support networks as communities in urban areas. What discussions has the Department had with colleagues and the Welsh Government to ensure that in particular black, Asian and minority ethnic people in rural Wales and indeed across rural UK have access to the information and support they need to get their vaccination?

Kemi Badenoch Portrait Kemi Badenoch
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I thank the hon. Gentleman for raising that matter. It is important. A lot of what we do is focused on NHS England, but I can assure him that we work with partners across all the devolved Administrations. For example, I have been at Covid-O meetings at which we spoke to representatives of the Welsh Government who were aware of these issues. We share our information widely, but if there is anything specific that he would like to know he should write to me and I will make sure that I obtain the answer that may be most appropriate for his constituency.

Future Relationship with the EU

Hywel Williams Excerpts
Thursday 10th December 2020

(3 years, 11 months ago)

Commons Chamber
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Penny Mordaunt Portrait Penny Mordaunt
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My hon. Friend is absolutely right. There are many things that we could agree to and could do that would be beneficial to both parties. Of course, what lies behind the politics and the negotiations are decades of relationships between law enforcement and all the agencies, services and forces that work together and will continue to work together in the interests of all our citizens.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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On Monday, the Paymaster General had no opinion as to whether a 20% average tariff on food imports would be “modest” for poor people. With the prospect of a no-deal resolution now greater than ever, does she think that an export tariff of 48% on lamb and 84% on beef would be modest for Welsh farmers?

Penny Mordaunt Portrait Penny Mordaunt
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Clearly, the information on tariffs has been published. It is on gov.uk, but I stress to the hon. Gentleman that we are working to secure a deal that is in the best interests of our farmers, our hauliers, our businesses and our citizens, and we will continue to do that until all hope is exhausted.

UK-EU Future Relationship Negotiations and Transition Period

Hywel Williams Excerpts
Monday 7th December 2020

(3 years, 11 months ago)

Commons Chamber
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Penny Mordaunt Portrait Penny Mordaunt
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I agree with all the points that my hon. Friend has made. I can assure him, from my involvement in the negotiations and keeping our partners informed, that all those issues with regard to Gibraltar are absolutely at the heart of our negotiating position. I thank him for raising that on the Floor of the House today.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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In the worst case of no deal, tariffs on food imports from the EU would on average be over 20%, but on beef mince they would be 48%, cheddar cheese 57%, oranges 12%—the list goes on and on. Over the weekend, however, the Environment, Food and Rural Affairs Secretary said that the impact of tariffs would be “modest”. Will the Minister concede that that is not true for the third of children in Wales who live in poverty, or for poor children all across the UK?

Penny Mordaunt Portrait Penny Mordaunt
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As I said, information about tariffs has been published on gov.uk. What I would say to the hon. Gentleman is that we are negotiating to ensure that we can get a deal. I understand his concerns, but our efforts are to secure that deal. I hope he would join us in that effort and send a clear message today to the EU negotiating team that that is in the interests not just of his constituents, but of all citizens across the EU.

Covid-19: Disparate Impact

Hywel Williams Excerpts
Thursday 22nd October 2020

(4 years, 1 month ago)

Commons Chamber
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Kemi Badenoch Portrait Kemi Badenoch
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My hon. Friend is right that we are looking across the board, but I just remind him that we are looking at those who have been most disproportionately affected and are most vulnerable. Although we have not found that LGBT groups specifically have been disproportionately affected, we know that they are losing out where healthcare services have been unavailable because they have had to close or provide other services to deal with the pandemic. We are looking to improve that, but the review that I am carrying out looks specifically at vulnerability and disproportionate impact.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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I am glad that information is available in different languages; real language choice provides a clear functional gain, as we know in Wales. However, I am against shifting away from seeing the pandemic as affecting discrete groups. Will the Minister commit the Government to continuing and extending economic support as further evidence reveals the groups who have been hardest hit?

Future Relationship with the EU

Hywel Williams Excerpts
Tuesday 9th June 2020

(4 years, 5 months ago)

Commons Chamber
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Penny Mordaunt Portrait Penny Mordaunt
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My hon. Friend is absolutely right; we have left the EU. At the end of this year, we will be a fully independent and sovereign nation. Our interests are best served by having that flexibility with rest-of-the-world trade and with the choices we make about our trading arrangements with others, as well as the EU. That is the basis of our negotiating position and it is one that we will hold to.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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Is it not now inevitable that both Northern Ireland and Irish companies alike will increasingly look to use the new generation of massive roll-on roll-off ferries for direct links with the mainland in Europe, which will have disastrous effects for bypassed Welsh ports such as Holyhead?

Penny Mordaunt Portrait Penny Mordaunt
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As someone whose constituency is a port, let me reassure the hon. Gentleman that I very much understand the concerns the sector has. It wants information about future operations, and support to put in place any adjustments that need to be made and timely information about them. A tremendous amount of work has gone on with ports, and the organisations they work with and rely on, in advance of announcements about border operations and future arrangements, as he will know, and we will continue to do that. We have to maximise the economic opportunities such investments in UK infrastructure will bring for his constituents and others around the country, and we will do that.

The Economy

Hywel Williams Excerpts
Monday 27th April 2020

(4 years, 7 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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My hon. Friend is well informed on these issues. I know he has put a lot of specific thought into this topic, and I welcome further engagement with him. He is right. We must think carefully about exiting these schemes to provide maximum support to the labour market and businesses, and to ensure that we do not inadvertently distort things and hamper our recovery by stopping people going to work and businesses re-employing them, which is the outcome we all want to see.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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On Friday, the Government announced support for ferry services between Northern Ireland, Scotland and England. The Holyhead-Dublin route was ignored. A great deal of Holyhead-Dublin traffic is in fact between Northern Ireland and Great Britain, including the transport of time-sensitive goods such as food and medicine. It is also vital to the economy of north Wales. Is the Chancellor just standing back and waiting for Holyhead, the UK’s second-busiest roll-on roll-off ferry port, to fail before stepping in?

Rishi Sunak Portrait Rishi Sunak
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As we have demonstrated, we are prepared to support critical transportation services in this country, with huge economic intervention in rail, in buses and, as the hon. Gentleman acknowledged, in ferries. I know my right hon. Friend the Transport Secretary is well on top of that and he will bring to me any issues that he thinks need my consideration.

VAT (Listed Properties)

Hywel Williams Excerpts
Wednesday 4th March 2020

(4 years, 8 months ago)

Westminster Hall
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Hywel Williams Portrait Hywel Williams (Arfon) (PC)
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Does the hon. Gentleman agree that there was a missed opportunity in 2008, when the ECOFIN conference in Helsinki agreed that VAT could be reduced to 5% on labour-intensive industries, which include building repair and renovation? Despite the best efforts of hon. Members, successive Governments have refused to take advantage of that opportunity, which would have been of great benefit to areas such as his constituency and mine, where there is a high concentration of listed buildings, very low incomes and a reduced ability for people to renovate their houses.

Lord Mackinlay of Richborough Portrait Craig Mackinlay
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I was not aware of that ECOFIN conference. Any country under the EU VAT regime has always had the ability to reduce VAT to 5% on items, but the problem is that it is a ratchet, so once VAT has been implemented on something, it can never return to zero. That has been a feature and problem of our VAT membership. We have had various discussions about that in the main Chamber on the so-called tampon tax.

Hywel Williams Portrait Hywel Williams
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That particular dispensation was for labour-intensive industries and, at that time, certain countries reduced their VAT. For example, France reduced VAT on restaurant meals; Italy reduced VAT on building renovation and repair; and Belgium reduced VAT on bicycle maintenance and repair. The reduction in Italy was an alleged example—a rare or perhaps unique example—of the Laffer curve in operation in that, when VAT was reduced, receipts to the state increased massively as people moved out of the dark economy.

Lord Mackinlay of Richborough Portrait Craig Mackinlay
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The hon. Member shows his great wealth and breadth of experience of international VAT matters, and I stand educated.

I want to do everything that I can to help preserve our great medieval towns. Listed properties are not grand ancestral piles; a huge majority are very modest properties that are owned and loved by normal people. Private listed property owners are protecting the vast majority of Britain’s built heritage out of their own pocket, but the costs for doing repairs and renovations have risen sharply in recent years.

--- Later in debate ---
Lord Mackinlay of Richborough Portrait Craig Mackinlay
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My right hon. Friend makes a perfect point about country living, as opposed to living in towns, because cheaper piped gas is often not available. People might have Calor-style units in their garden, or they might rely on solid fuels such as coal. We had discussions, dare I say, with the Government last week and advanced various measures that I cannot say I fully agree with at this time.

In 2012, we got to the point where the zero VAT rating for authorised alterations to listed properties was removed. The owners of 500,000 listed buildings across the country, 98% of which are privately owned, then suffered a potential increase of 20% in anything that they do to keep their properties in a good state of repair. As listed property owners often say, an individual never really owns a listed property, but is merely borrowing it.

Before the 2012 Budget, the zero VAT rating was available as long as people had applied for the proper listed property consent with the local authority. As hon. Members know, such consent is often costly to obtain and requires input from specialists, including architects and building control, the navigation of the local planning system and a variety of interpretations by conservation officers. All of that is on a scale that is wholly different from that of people who do not live in listed properties, and such requirements all add costs—even before having the bespoke works required.

The all-party parliamentary group on listed properties, of which I have been the chairman, is currently being re-established. It has evidence that the addition of VAT reduced the number of recorded works being carried out to protect and maintain listed properties by some 30% in the first four years, between 2012 and 2016. There was a notable and recorded drop in applications for proper conservation works. One can only guess what was happening. Were people simply not bothering to go through the process? Owing to the extra cost, were they simply deciding to make do with where they were? There was a full 75% drop in applications over just three years, subsequent to the change in the VAT rules.

These works will be of ongoing economic benefit, often creating a new home where one did not exist before or converting an older property into a business premises. They are positive goods that would perhaps take pressure away from new builds on green spaces. I have spoken to many listed property owners who face financial hardship. Many have been forced to sell their home as a result of costs increasing by 20%. It has to be said that a tax on listed buildings is not a tax on the wealthy, but a tax on attempts to protect our cultural heritage.

I secured the debate to join thousands of listed property owners in calling on the Government to introduce a form of VAT relief. Preferably, let us go back to where we were: a reduction from the 20% rate back to zero, which would be a great place to be. That will be possible in the post-Brexit world, but we are currently in our implementation period, so 5% could be achieved at the Budget next week.

Maintaining listed buildings has a lot more in common with other kinds of building work that has a lower rate of VAT. Some energy-efficient measures qualify for the 5% rate—obviously a restriction was introduced recently, which seemed rather perverse. Converting houses into flats, and renovating empty properties that have lain empty for two years qualify for a lower VAT rate of 5%. The Government and Treasury quite rightly want to encourage bringing such properties into use, and that nudge effect is advanced through the lower VAT rate.

Of course, the biggest anomaly of all—a correct anomaly, in my view—is that we have had a zero VAT rating on new builds since we became a member of the EU. There is a long history to this type of debate, going back to the 1940s. We had the Town and Country Planning Acts 1944 and 1947, which implemented the listing system that we know today. Even back then, the Government knew that they were imposing upon listed property owners a new range of probably unwelcome regulations, and that they had to give something in return. The something in return was a zero VAT rating or, before 1972, sales tax exemptions for this type of work. It is essential that we have a lower rate of VAT on listed properties, because we want to give people the opportunity to make the necessary improvements to this country’s built heritage.

In the 2012 debate—that year’s Budget did not go down too well, because there were quite a few VAT measures in it—the then Prime Minister, David Cameron, said that the reason for the change was to prevent an exemption for a

“big swimming pool in a listed Tudor house”.—[Official Report, 18 April 2012; Vol. 543, c. 319.]

That was a fairly thin argument, because I do not think it was taken up by too many of the 500,000 listed property owners. If such behaviour was going on, we could have exempted that from the zero VAT rating in isolation.

Hywel Williams Portrait Hywel Williams
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Perhaps I can reinforce the hon. Member’s point by declaring an interest. When I bought my listed house some 20 years ago—very cheaply, I should say—it came with a name from my children. They called it the pizza house, because it came with added mushrooms growing out of the walls. It certainly did not have a swimming pool, but I, like everyone else, had to pay 20% VAT on the renovation. I think that strengthens the point that he is making.

Lord Mackinlay of Richborough Portrait Craig Mackinlay
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The hon. Member makes that point well. Such properties need significant renovations that are not the norm when buying newer-type properties. We need to make listed buildings properties that people want to own, to spend money on, and to do the right thing by maintaining them. Maintenance costs for those properties can simply huge, so offsetting some of that cost would make a meaningful impact.

What is VAT there for? It was always designed to be a tax on consumption. Painstakingly maintaining a national heritage asset should not be considered consumption, but action in the national interest. Not only is the economic cost of the work often more expensive than other work, the VAT is an additional tax for doing the right thing. Removing the VAT does not give money back to the owners; it simply means that the Exchequer does not gain a little bit from the maintenance of the fabric of the nation.

Across the country, the built environment of our great towns and cities drives tourism and the continuation of many historic building skills. Government policy in the national policy planning framework, as well as guidance from Historic England, state that heritage protection must enable buildings to stay in active use and alterations can support that. If owners make changes to their properties without any impact on historic features that is considered a positive outcome, as it enables the continued use of such properties. The old way of removing VAT by zero-rating the renovation was simple, easy and reasonable. There is no reason not to return to that pretty simple scheme.

Hon. Members have mentioned energy efficiency. The type of energy efficiency required of older buildings is vastly different from more modern buildings. Materials are likely to be different, and the skills required to make such properties more energy efficient are different. We do not want those listed properties to fall out of use, and support would help to keep them in use. As has been accepted within other parts of the VAT code, renovations can be at a lower rate of VAT if properties have been out of use for two years, so reductions are not unusual.

Works on listed buildings are often carried out by tradesmen who specialise in conservation work. They are often small local businesses, rather than big corporates, so a reduction in VAT would increase correspondingly the amount of activity and would be a boost to a small and declining sector. Cutting VAT would encourage investment in skills in those types of artisanal works, and could encourage more young people into a sector that struggles to recruit. The increased taxable profits in those businesses would benefit the Treasury in corporation tax and income tax receipts. Cutting VAT would prime the pump in that whole area.

It is estimated that, through tourism, heritage across the country contributes £31 billion of value added to the economy. Those homes make our towns desirable places to visit, whether they are in Sandwich or in the constituency of Bath, which is represented in the Chamber. Who benefits from that tourism? Local businesses. There is not much in it for the public, who are busy maintaining their own properties rather than attracting tourists.

An interesting example is the Isle of Man, which has been through a similar process, following an argument similar argument to one that I am advancing. The Isle of Man has reduced VAT on such repair work to 5%, but only for the labour element. Some 96% of the Isle’s construction firms have reported increased workloads; 43% have reported taking on more staff; and 40% reported that their clients were having work done that they would otherwise have put off or not had done at all. There was a significant move away both from the owners having a go and carrying out work with which they are not fully conversant, and from rogue traders and cash-in-hand deals, which are not too far away from most street corners. The Isle of Man scheme was meant to be an experiment but, owing to its success, it is now permanent.

The Listed Property Owners Club keeps vast records on activity in the listed property market. There has been a drop in listed property applications to local councils and in works being undertaken. Figures from Historic England show that cost was one of the biggest reasons for works not being carried out. The numbers are significant: in 2017, 30% of people said it was just too costly and that they were not going to do the work at all. Another reason is that specialist local skills are dying out. In 2017, 17% of people could not get works done because they simply could not find a qualified trader. Historic Houses suggests that £1.3 billion of outstanding work to listed properties is being put off or not carried out at all. That is money that people would want to spend if they could afford it and if VAT were reduced.

I have not been quiet on this topic. I corresponded with the Minister just a few weeks ago, and I can anticipate some of the arguments that he may make in response. He might say that the rationale for the removal of the zero rating was to restore or to address a VAT anomaly, but we already have anomalies, with zero-rated new builds and the two-year lower VAT rate for bringing a property back into use. He might say that it was unfair that some people got a relief, while others did not. We are not talking about normal properties, however. We are talking about unique skills, because very expensive bespoke repairs are often required.

Getting new PVC windows done is VAT-able, but there are a vast number of companies that can do that and it is a cut-throat industry. The approach to a listed building is different, because it will often need bespoke wooden frames made at three or four times the price. That is an anomaly, and I am asking for an exemption from VAT on those bespoke works. Even without the VAT, those bespoke works would still be far more expensive than most standard products that are taxed at the 20% rate.

The old VAT relief used to nudge people towards the painful experience of applying for listed property consent, because saving 20% on a repair bill was seen as a good thing. That made sure that conservation works were up to the proper local standard, because there was an incentive. A worry is that people are undertaking inappropriate repairs to their properties to save money and, because enforcement by the local authority is highly unlikely, they are willing to take that risk. That is not a good place to be; I want to encourage people to do the right thing with their properties.

Another scheme that has been running for a very long time is the listed places of worship scheme, which was mentioned by my hon. Friend the Member for Henley (John Howell). Through Government grants, the scheme pays for the VAT that listed places of worship suffer—that could be implemented in lieu of a full zero rating. The scheme seems to work, and 89% of such places have used it. Over the period, many churches have used it five or six times, and a third of all churches use it annually. The Treasury might say, “It’s complicated and cumbersome”, but 13,000 applications have been managed effectively. It seems to work—if that is a method HMRC will consider—but the simpler method would be to go back to what we had before, which was zero rating if the proper listed property consent had been granted by the local authority.

To summarise, we can achieve what I would like to achieve by two means: either we go back to where we were before the 2012 Budget; or we go to a scheme akin to the listed places of worship grant scheme—so by means of a grant, which might make it targeted and would certainly prevent the swimming pool in the Tudor mansion. Now we are not so bound by rules on VAT, we have an opportunity. We can create our own framework that is right for our country, and I would like the Treasury to be part of people doing the right thing—improving, maintaining and repairing their properties. I have heard no great reason why the perceived anomaly was an anomaly at all, given that many charitable institutions receive VAT relief and other building works have a variety of VAT reliefs. We could push training, skills and profits into declining trades, and unleash a lot of pent-up expenditure into a market that is part of the good fabric of the country. Next week, I will be delighted to hear about some movement of support.

--- Later in debate ---
Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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It is a pleasure to see you in the Chair, Sir Christopher.

I thank the hon. Member for South Thanet (Craig Mackinlay) for securing this debate, which is on an issue that is overdue for some action. I certainly hope that the Government will take it on board.

The SNP has argued for a reduction in VAT for energy improvement measures in homes. We asked for reductions in VAT for more modern buildings, those affected by the cladding scandal. I agree with the hon. Gentleman that there is a strong argument to do that for listed buildings as well. Research by the Federation of Master Builders demonstrates that cutting VAT for energy-efficiency improvements, for example, would significantly boost the UK economy and generate thousands of jobs, bring empty properties back into use, improve the energy efficiency of our housing stock, reduce the incidence of fuel poverty, and protect consumers and legitimate businesses by significantly reducing the competitive advantage of rogue traders.

The hon. Gentleman went into some of the history of the measures we are debating and how they came about. In 2012, when the then Chancellor proposed levying VAT on listed properties, the Scottish Government Culture Secretary, Fiona Hyslop—I note she is still in her post, despite the UK Government being on their fourth Chancellor since then—said in a written answer to a parliamentary question in Holyrood:

“The UK Government’s proposal is clearly a deeply regrettable step in the opposite direction from the approach that the Scottish Ministers advocate.

Maintaining the VAT relief on alterations to listed buildings, and reducing the VAT rate applicable to repairs and maintenance, would be important positive steps which would stimulate economic activity in a sector worth around £2.3 billion gross value added”—

to Scotland’s economy alone—

“a significant proportion of which is attributable to construction activity.”

At the time, she wrote to the Chancellor,

“urging him to withdraw from this policy”,

but, as we know, that is not always taken on. However, there is always an opportunity for the Government to reflect on the error of their ways—perhaps they would be wise to do so.

There are many arguments around the subject, and rationales about Tudor swimming pools and the like have been given, but this is not about people in big mansions getting their houses repaired. The reality is that half of listed properties in this country are occupied by people at the very low end of the socioeconomic distribution. This is not necessarily about attacks on the wealthy or just about protecting glorious listed buildings; this is about the homes that people live in.

There are 1,840 derelict sites and buildings in Glasgow city; 126 of those are in the listed buildings at risk register. It is no surprise that many are concentrated in areas of higher deprivation. People in those areas are three times more likely to live near vacant derelict land, but they are the same people who benefit most from having those buildings repaired and brought up to standard.

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There is a particular issue where there is a high concentration of listed buildings in poor condition and low incomes. The market in general has a chilling effect on the provision of specialist labour, as the hon. Member for South Thanet (Craig Mackinlay) mentioned. There is a more general effect of the amplification of housing deprivation when one compares the many hundreds of thousands of new builds, particularly in urban and suburban areas in the south-east, which are free of VAT, with buildings such as those in my constituency, where 20% VAT is paid.

Alison Thewliss Portrait Alison Thewliss
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The hon. Gentleman is correct; it is a perverse incentive that a building could be perfectly fixable, but it is more cost effective to demolish it and build something new. We want to incentivise people to keep those buildings. In Glasgow, huge swathes of the city have been demolished and replaced with newer and less adequate buildings, which in turn have been demolished, rather than investing in the original buildings. In the areas where we still have a dense tenemental stock, there would be a real benefit to incentivising people to repair those buildings and keep them, because they are fundamentally good and we should have them for the future.

Within the city of Glasgow there are 25 different conservation areas. In my constituency there is Central, Park, East and West Pollokshields, Dumbreck, Strathbungo, Bridgeton, Hazelwood, Walmer Crescent and St Vincent Crescent. They all have different characters: the working-class neighbourhoods of Bridgeton have a beautiful cross, which would see the benefit of further repairs. It is very different in character from West Pollokshields, where there are bigger houses.

All those areas need repair and maintenance, because times have changed since the Victorians built them. They need continual maintenance and repair to avoid dramatic tenement collapses, which do happen on occasion in the city. That is because, despite the best efforts of organisations such as the Glasgow City Heritage Trust, which pays out building repair grants, development grants and grants that go towards those traditional skills, they are just papering over the cracks of a larger problem of the maintenance of tenement stock. My hon. Friend the Member for Glasgow East (David Linden) has also made the argument in the House that we need to look at these issues and find ways of tackling the burden on cities. Reducing that 20% VAT rate as low as we can would have a huge impact on our ability to deal with that.

The social cost of derelict and damaged buildings is huge. They are deeply uninspiring for people who live next to the sites and look out on them. They are a drag on aspiration and motivation, and they often serve a visual reminder to many people of a distant, out-of-touch Government who neglected the industrialised communities over generations and left them to rot. The Scottish Government have made some progress in reversing the situation through the Community Empowerment (Scotland) Act 2015, which gives community groups the option to repurpose derelict buildings for the good of the people who live in those communities. The funding to do so comes from the Scottish Land Fund. Those are community-led, focused actions, instead of the top-down approach that has often failed communities and left them behind.

From a policy perspective, investment in high-deprivation areas makes economic sense. People in those areas are much more likely to spend their money locally, and repurposing buildings to create jobs or businesses has a high multiplier effect. Will the Minister look at the issue from that point of view, as a good endeavour to incentivise people in those areas?

There are plans afoot in my constituency to refurbish the old St James Primary School in Calton, to provide a brand-new primary school—a much-needed facility that will, if it goes through, specialise in Gaelic education, to become the next Gaelic school in the city of Glasgow. The building was built in 1895 but, sadly, stood derelict for 10 years after it was closed by the Glasgow Labour administration. At the time, I was a councillor fighting to save it, because it was very much the heart of the community. Without it, the community has no hub—all people see when they walk past is a derelict building with trees growing out of its roof. The council at the time said that it was too difficult to run and too expensive to repair: too expensive to get the energy efficiency measures that were needed; too expensive to fit a boiler to replace the old coal boiler that the janny had to haul coal into. Making the VAT rate for those kind of improvements more incentivised would be a good thing to do.

In addition, there is a lot to do with identity and the importance of those buildings in communities. I urge Minister to take action. As hon. Members have said, the excuse of the EU is finished with, sadly—I agree with the hon. Member for Bath (Wera Hobhouse) on that. As the hon. Member for Arfon (Hywel Williams) said, some of this has been of our own making, but it is now up to the Government to put that right.